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■' -;.v £ L : ?•- »• -s'- •'••■ 






Making property 
perform better. 







-• - ■ « «'c * '* " 

V ' •- > 


gCSSi, AUSTRIA Sfch. 15; BELGIUM Fr 30; DENMARK' Kr APft FRANCE Fr 5 JO; GERMANY PM 2.0: ITALY L 1,000; NETHERLANDS B ZJS; NORWAY Kr 8.00; PORTUGAL Be SO; SWEDBi Kf 6-00; SWITZERLAND Fr Z.0; BRE 42p: MALTA 30* 



""""" -M 





. .The . key 

1 ministers ; y«te*dsy decided ' 
that V7ecar.aj*lfeoritie»^ouiti 
cope \rtth ate efEee£s«fflood- 
ln« and snfrw without central 
govemmerif ; j setting : '■' op 

r to 

- dX)r»anat& reliefwerk. . 

■Bnt at a^feaal’ ioeefSng at 
-■ Number lO called TiyMra 
Thateb^,-it .was Agreed vibe 
Government would pay part of ; 
the bfll for the damage. 

As fzi 1979i locaI aathori- 
.< ties: Win be;able t© icjaim 75 
'3 per cent ot JJm «k«k over, 
the product ot vj^safiy rate 
frwncenfi^^vertnuent. 

.' EnriroHnieBt . r ;"1 1%. Secretary 
Michael Heseltine reported 
that conditions had improved 
slig&Uy and that Councils and 
emergency-' ■Services' 'ulere 
coping %th the crisis. He* 
believed the -Government's 
response was being properly 
co-ordinated. 

. in Wales^ put-time soldiers ' 
Were’ ordered to report for 


|ic 




V l r :• 


■ -/ •im * 2? 


;dHty to - help dig out snow- 
bound «mnn unities. 

the Territorials will , join 
regular servicemen; in Opera- 

. tion - 1.' Snowman-"*- a- massive 
t^ww-elejaing caunpaign . -The 
Defend* Afhtistry estimated 

up fe Awd ' meh- wffl he 
. employed;:^. : /..n ••' 
..^Factories'- < and. . schools 
througtomt Souith Wales 
remained -closed and all main 
roads were impassable: Elec- 
.trtcliy ^engineers, were still 
struggHhg. to restore power 
to d^^OOO Monies. 

In Stot^nd, temperatures 
were stall po low in Tayside 
thai'riKtd salt mas no longer 
effective' Ahd in Northern 
Ireland- farmers poured hun- 
dredbof . gallons of milk away 
because tankers were unable 
tqcoHertit. • ’ 

- Forecasters warned yester- 
day there would -would .be no 
let-up ln the frecring condi- 
tions until at least Thursday. 


&E 8 ERAL 


BUSINESS 


sale of jets 
to Taiwan 


Doflar 
advances; 
Gilts ease 


President BonaM 1 Reagan 
rejected Taiwan's request for 
: advanced UJS, filter aircraft' 
in- a< move likely to enrage his 
rigfrtrwing: supporters. Page 4 


Truce stirviYes 

La bo crr’strtice, survived a ‘meet- 
ing of the party’s'-iorganisatidn 
cominittee; when, left rigid- 
agreed not. to r forest tKyisiYe 
issues to 

: Policeifbr ii'iaf; /■/.. 

Twtfrj 


• DOLLAR rose to DM Z2 & 3 
(DM 2.2585). SwFr 1.8535 
(SwEr 1.8265) and Y223.25 
(Y22L35), reflecting a firmer 
trend in Eurodollar rates. Its 
trade-weighted index was 10&2 

• (1075). rpage 20 . 


• ; STERLING lost 325c at 
$L8865. - It was also lower at 
DM 43075 (DM 4335) and 
SwFeAASTS (SwFr 3.5975). Its 
Bank et England index was 9L0 
0L«r. ; tPage 2O ' .- /• 



Ttateth ricte. 

were granted baUl : ' •' 

Pricerifi«$ease 


A EorodoUar Interest rales rose, 

&rge^-iO re^onse to the. 

snpner.tfipn expected fall off 
supply- i Tbe 


Nato allies join U.S. 


in condemning 


repression in Poland 


BY JOHN WYI£5 IN BRUSSELS 


EUROPEAN members of Nato 
yesterday rallied round .die 
U.S. with a toughly-worded 
denunciation of repression in 
Poland and a warning that the 
Pofish. and Soviet Governments 
TTiight face political and econo- 
mic reprisals. But tbe allies 
agreed only to “study” possible 
actions. 

Attacking “the massive viola- 
tion of human rights and sup- 
pression of fundamental civil 
liberties in ' Poland,” Nato 
Foreign Ministers meeting in 
Brussels, also condemned Mos- 
cow. “The Soviet Union has no 
right to determine the political 
and social development of 
Poland,” they said. 

The ministers officially sus- 
pended “for the -time being” 
negotiations on the rescheduling 
of Poland's official debt to the 
West, due to be repaid l his 
year. 

They also agreed to withhold 
any further credits for Poland 
other than those needed for 
food purchases. ' 

At the same time, they under- 
took to continue supplying 
Poland with humanitarian aid 
provided it reached the people 
for whom it was intended. 

Turning to the Soviet Union, 
yesterday’s communique said 
the Allies would examine pos- 
sible measures affecting imports 
from Russia, maritime and air 
services agreements with 
Mooscow, the size of Soviet 


commercial representation in 
their countries and the condi- 
tions surrounding export 
credits. 

They also undertook to 
44 reflect *• on longer-term East- 
West economic relations “par- 
ticularly energy, agricultural 
commodities and other goods, 
and the export of technology.” 

Although there is no clear 
timetable for imposition of 


Poles look fearfully towards 
’ future. Page 3 
Polish row hits TUC links 
with East Germany, Page 10 
Editorial Comment, Page 15 
Mitterrand and Schmidt to 
meet. Back Page 


these measures, it was agreed 
that each member of Nato 
would act “in accordance with 
its own situation and legis- 
lation ” to identify “ appropriate 
national possibilities for 
action.” These would also 
include restrictions on the 
movement of Soviet and Polish 
diplomats. 

- Lord Carrington, the British 
Foreign Secretary, said that 
Nato believed it had “demon- 
strated that the Alliance was 
determined not to be seen in 
disarray " and not - to be 
divided by Soviet tactics. 

Stressing the Soviet respon- 
sibility for events in Poland, 
yesterday’s declaration warned 


that the crisis could damage 
arms control, negotiations in 
Geneva. Mr' Alexander Haig, 
the U.S. Secretary of State, 
warned last night that the 
“ atmospherics ” might not now 
be good enough-for tbe negotia- 
tions to make progress. 

Last night's semblance of 
harmony in tbe Alliance 
appeared more fragile, -however, 
than many ministers were ready 
to admit. It seemed to have 
been secured by glossing over 
some serious points of 
contention. 

In addition, the ministers 
were deliberately vague about 
the precise nature of actions to 
be launched against the Soviet 
Union and when. Nato economic 
experts will meet next week to 
try to co-ordinate government 
policies. 

Peter Montagnon adds: Sus- 
pension by Western govern- 
ments of talks- to resdiedule 
Polish debts falling dne in 1982 
would make it impossible for 
Western banks to begin dis- 
cussions on commercial debts 
falling due this year. Western 
bankers said last night. 

Unlike the governments, the 
banks httve not yet signed an 
agreement with Poland on debt 
falling due last year. 

Poland has to repay or re- 
schedule debt falling due to 
the West of more than $6bn 
this year of which $2.5bn to 
$3bn is owed to Western 
governments. 


ICL and Muirhead set to 
acquire parts of Nexos 


BY CUT DC JONQUIERES 


Wholesale popT increased an 
December, tte^the smallest, 
amount sjn£e l -jSi£ summer,, but 
the- iyear-ojtjiSt 'rise, is still-, 
firmly iiL double figures Bade 


Shdwitimper fined 

International/, showjumper 
Harvey Smith was fined: £75 by 
Harrogate - * magistrates for ; 
assaulting a man who insulted 
the Royal Family. 


7-daytNTERESTRATtS 


»OXr 

155%! 


-fro* 


145% 


Interbank 



14* 


Eurodollar 



.13% 

1« 

asr 


•T981 


1982 


Pakistan President Mohammad 
Zia U1 Haq partially lifted press 
censorship but' made* dear -a 
ban - on political reporting 
would; continue! Pa^e 5 


seven-day rate rose to 122 per 
cent (Ki pec cent), and the 
three-month rate rose to 14 per 
emit (13f per cent). 


Army guns theft 


Tory MP Eldon Griffiths called . 
for a full inquiry. Into /five theft 
of. guns valued at £2,000 from 
an -army Arracks hear 'Qam^ 
bridge.- v . . .- 


# EQUITIES saw investment 
Interest blunted by threatened 
rati and miners’ strikes. Tbe 
FT atbsfcaxe index was 0.8 off 
at 530.5. Page 26 * 


Minister survives 


• GILTS were also easier. Tbe 
Government - Securities index 
was OJfl lower at 62.14. Page 26 


Malaysia^ Foreign ..Minister 
was rescued from dense jungle 
after surviving a plane erash 
which kitied the .other two men 
on board.-- > ’ 


• GOLD fell $11.5 to a 26-mqnth 
tow of $389 inltondoxL In New 
York tfie Comex January dose 
was ¥385A Page 20 


Invaders routed 

’Haitian Government sai d it had 
routed, the , vanguard of a.' 37- 
man invasion force of Exiles led 
by ' a Florida filling station 
-operator, -'..v. - 


• wall Street was off io.46 
at 856.07 before the dose.' 

P.age_ 24. . . ; . 


Offer rejected V 

Israeli settlets ^who: wffl have 
to evacuate the .Sinai ‘ when It - 
is refarned »’IigypE in' April 
rejected the latest i357m com- 
pensation offer. Page 5 - 


• ROYAL BANK of Scotland 
group lost 'over £100m of its 
stock-market value, on reports 
that the-. Monopolies and 
Mergers-- Commission rejected 
two- bids for. ft. Back Page 


• BRITISH STEEL faces more 
job losses and closures because 
of U-S. steel producers' anti- 
dumping shits, Bade: Page' 


Athens smogplan 

Athens industrial production is 
to be cut by a third an thnotor- 
. ists will be allowed ; to- drive- 
only oh- alternate days, in 'an 
effort ' to /disperse a pollution 
• -jeioud. 


• CHINA’S, industrial output 
grew 4 -per cent last year, one 
point more than planned, to a 
value of Yuan-5l9bn (£155bn). 


Briefly.** 

Philippines was shaken • by a 
strong ^ earthquake: ■ 

Italian es-con vi cts de m a ndi ng 
jobs.-dashed. wUh /pt«ice ia . 
Naples- 


• HESKETH Motorcycles will 
this, week turn out the first 
production model of its long- 
delayed 1.000 cc motorcycle 
from its Daventry assembly line. 
Page 7 - ■ 


• A: G. BARR, soft dsink-maker, 
reported pre-tax profits for the 
53' weeks to October 31 of 
£3J28m. up from £2Jj7m for the 
previous 52 weeks. Page 13 


CHIEF PRICE CHARGES YESTERDAY 

(Pricesln pence unless otherwise indicated) 

-.!/ ,4 '.RisES. vw»i*m ni* 

Assot British Foods 151 + 5 
Aswc, Paoer 47 + 3 


Barr’cA, ......... 225. + 'W 

Bejam^:^.;. 120 + 7 

Car^^ 72 + 10 
Change Wares ...... 33 + 6 

Ellik.&.Everard ... 128 + 10 
Fenwtt 545 + 20 

Ford flfiuitia) ; 24 + 2 

HK t Shanghai ... 139 + 11 

Manders-,.;.....' M ..... 166 + 8 

Parad5so-.<B^ 41 + 4 

Rank Org. ..... ....... ISO + 4 

iLHJt : 65+3 

Stand. Chnfi. /Rank 680 + 17 
TenvConsttiatfe. .60 + 5 


Union Discount' ... 410 
-Berkeley Explortn. M5 

Nickelore 30 

FALLS 

Bank of Scotland ... 478 
General Accident ... 302 

Midland Bank 340 

By!. Bk. Scotland... 143 

Scan Data — - 9g 

Staoelco 

Trusthouse Forte ... llo 
Buffeis ...... 

Cons. Gold Fields ~ 4fo 

Be Beers Dfd 343 

Gencor Jr? 

Impala Plat- 30» 

Libanon 755 


+ 10 
+ 20 
+ .4 


40 

6 


49 

15 

17 

5 

u 


- 9 
>- 35 

— 20 
■—.51 


ICL. BRITAIN'S leading . com- 
puter . manufacturer, and the 
Muirhead facsimile group are 
set to take over much of tbe 
remaining- business of Nexos, 
the loss-making office automa- 
tion company in which the 
National Enterprise Board has 
invested £30m. 

Agreements in principle were 
signed yesterday under which 
ICL would acquire marketing 
rights to Nexos’s word pro- 
cessor, while Nexos’s facsimile 
machine interests would be 
taken over by a joint venture 
between Muirhead and the 
NEB. 

The arrangements were 
announced after the abrupt 
termination of negotiations 
between the NEB and Gestetner, 
the .copier and duplicator group, 
on a plan to form a joint com- 
pany to take over the develop- 
ment, manufacturing and 
marketing of the Nexos word 
processing machine. 

Nexos was set up as an NEB 
subsidiary in early 1979 in a bid 
to - break into the emerging 
market for sophiticated office 


systems. But it never succeeded 
in establishing itself and has lost 
more than £15m. It employs a 
staff ef about 250. 

Gestetner said it bad with- 
drawn because the British Tech- 
nology Group (BTG) — of which 
The- NEB is a part — had been 
unable 4 * to meet its obligations" 
under an agreement in prin- 
ciple which it had readied with 
Gestetner on November 30. 

This was understood to refer 
•to the failure of The NEB’s 
attempts to help Gestetner ac- 
quire effective control of Logica 
VTS. which makes the Nexos 
word processor. Logica VT S is 
owned 43 per cent by the NEB 
and 57 per cent by Logica, a 
leading London-based computer 
systems house which designed 
the Nexos machine. 

Under the arrangements 
announced yesterday. Logica 
would retain control of Logica 
VTS. Logica has also reached 
an agreement to acquire or find 
buyers for the NEB’s interest 
in the joint subsidiary within 
the next year. 

The agreement, in principle 


Call to suspend ACC shares 


BY JOHN MOORE 


LORD GRADE and his fellow 
directors of Associated Com- 
munications Corporation, the 
entertainments conglomerate, 
asked for the group's shares 
to be suspended on the London 
sTockmarket yesterday morning 
‘■pending -a farther announce- 
ment regarding control of the 
company.” 

Lord Grade, 75, is now widely 
expected to relinquish the chair- 
manship and his role as chief 
executive, selling his controlling 
holdings in the voting shares to 
business interests of Mr Robert 
Holmes a Court, the Australian 
inagnate. This may involve a 
change in control of Central 
Television, the Midlands con- 
tractor in which ACC has a 
51 per cent holding. 

' The non-voting “A” shares, 
which are held by more than. 
11,000 shareholders, were sus- 
pended' on the stockmarket at 
52p- 

Lord Grade and his wife hold 


27.6 per cent of the voting 
shares of Associated, and 
another member of the Grade 
family, Mr Paul Grade, holds 
a stake of about 1.7 per cent 

Mr Holmes a Court holds 3 
per cent of the voting shares 
and nearly 51 per cent of the 
non-voting shares and was 
recently appointed a director of 
Associated. 

The planned sbake-pp in con- 
trol of Associated Communica- 
tions could lead to Lord Grade 
assuming the title of preadent. 
It is taking place as Associated 
is defending in the courts a 
record compensation payment to 
Mr'Jack Gill, its former manag- 
ing director. 

Lawyers for . Associated 
appeared before Mr Justice 
Slade in the Companies’ Court 
to defend a payment of £560,000 
to Mr Gill and a provision to 
allow him to • buy a £275,000 
company house for £165,822. 

The Post Office Staff Super- 


annuation Fund, which holds 2.5 
per cent of Associated’s non- 
voting shares .(supported . by 
the National Association of Pen- 
sion Funds, and 10 other insti- 
tutional shareholders, with 14 
funds invested in Associated, is 
seeking an injunction to block 
the payment. 

Mr Justice Slade gave leave 
to the defendants for a 14-day 
adjournment while they prepare 
a case in support of the pay- 
ment. Meanwhile, Associated 
must continue to undertake not 
to make over to Mr Gill any part 
of the compensation. 

The injunction questions 
whether an .option agreement 
on the sale of the house to Mr 
Gill was properly entered into. 

The petition also alleges that 
the option agreement on the 
house deal was not disclosed in 
the 1980 company accounts, nor 
in the prior year's accounts of 

Continued on Back Page 


CONTENTS 


London’s third airport: the battle for 

Heathrow 16 

Royal Rank: dilemma for the 

Cabinet 17 

Jamaica: success d aimed in attracting 

investment 4 

Technology: electronics for the dentists’ 
chair 11 


Management: Uoyds Bank, chases the 

small businessman 12 

Commercial law report: unequal treat- 
ment for equal shareholders 14 

Lombard: Giles Merrit on why Europe 

lags in electronics 17 

Editorial comment: Nato and Poland; 
anti-trust decisions 16 


American Nsws 

4 

European News ... 

2.3 

Money & Exchngs. 

20 

Labour 

10 

Appointments .. 

7 

FT Actuaries 

26 

Overseas News ... 

5 


20.27 


.... IS 

InU. Companies ... 

21-23 

Share Inrortmtion ZB, 29 

Weather 

30 

Base Rales 

5 

Leader Pegs 

18 

Stock Markets: 


World Trade News 

6 

Business Opts. 

:..12,T3 

letters 

17 

London 

26 

World Value E ... 

26 

Commodities ... 

S 

Lax 

30 

Wall Streat 

24 



.Companies UK 

... 18,» 

Lombard 

17 

Bourses 

24 

ANNUAL STATEMENTS 

Cisuwwd 

15 

London Option* ... 

IB 

Technology 





... 15 

Management 

12 

TV A Radio 



19 


21 

Merr & Matters ... 

76 

UK News: 


Matt. Brown 

Eure. Options ... 

... 13 

Milling 

19 

General 

7,8 

Albany Life Aasur. 

18 


For latest Share Index phone 01-346 S036 


900 


Sown 


SOD 


700 


600 

500 

400 


300 


¥ 

OLD ■ 

ke: 


L_2 


1-7 


1-8 

DOLLAR h 

- 

1-0 

" against . 


2-0 

“STERLING I 

— 

2-1 

1 m 


2*2 

rA r — 

- 


r v.jj 


25 

i »r_ 

_ 


1979 1980 V96I 1932 


Gold falls 
to $389 


By David Marsh 


THE LONDON gold price fell 
yesterday to $389 an ounce, 
the lowest for snor ethan two 
years, as higher US. interest 
rates sparked off a fresh surge 
of investment funds into dollar 
deposits. 

No significant gold sales by 
the Soviet Union have been 
registered so far tius year. But 
dealers generally feel that 
Moscow will son have to start 
selling again in view of strained 
East Bloc finances. This is 
adding to downward pressures 
on the bullion market 

Generally firmer Eurodollar 
interest rates drove the U.S. 
currency sharply higher on the 
European foreign exchanges. 
Sterling closed in London at 
$1.8865, a fall of 325 cents 
compared with Friday and its 
lowest since Christinas. 

The trade weighted index of 
the pound's value against a 
basket of other currencies 
Continued on Back Page 
Money Markets, Page 20 
Lex, Back Page 


All-out strike 


vote by militant 
rail branches 


BY PHUJP BASSETT, LABOUR STAFF 


TRAIN-DRIVERS union leaders 
are being pressed by legal 
branches to launch an all-out 
strike from midnight on Satur- 
day. to follow -the two-day stop- 
page due from tonight. 

The Associated Society of 
Locomotive Engineers and Fire- 
men, which has called tonight's 
action, yesterday had talks with 
British Rail, but tbe talks broke 
down and there seemed little 
hope that the action would be 
called off. 

There will be no trains after 
about 10 pm tonight and ser- 
vices will not resume until Fri- 
day morning if the action goes 
ahead. BR said yesterday. 
Though the strike is not due to 
begin until midnight, drivers 
will finish work at the end of 
their shifts. 

British Rail said no overnight, 
trains would run from last 
night until Friday night. The 
system would be shut down 
progressively from 10 pm to- 
night to get rolling-stock into 
the best position for a return to 
work on Friday. Carriage of 
livestock and perishable traffic 
which could sot be ensured de- 
livery today has been suspen- 
ded. 

A large number of militant 
branches, including those at 
Kings Cross, Euston, Victoria 
and Waterloo stations in 
London, and others at Col- 
chester, in East Anglia, on 
Merseyside and in Yorkshire, 
have voted for an indefinite 
strike from Saturday night 

The union's executive was 
last Right considering what 
action to take to follow the 


two-day strike- The branch 
pressure seemed likely to make ' 
itself felt. 

Branch militancy was re- ' 
fleeted in a decision by Kings 
Cross guards yesterday. The 
guards are members of the < 
National Union of Railwaymen 
and are not directly affected by 
the present pay and produc- ; 
tivity dispute between British 
Rail and its drivers. They 
voted to stage two one-day 
lightning strikes over ihe next 
fortnight in support of the 
drivers’, position. 

The abortive talks between 
Aslef and British Rail got under 
way yesterday only after BR 
agreed that they should not take 
the form of a meeting of the 
Railway Staffs National Council, 
the industry’s highest-level 
negotiating body. 

Asief insisted that it was not 1 
prepared to negotiate on BR's 
decision to withhold payment 
of ihe 3 per cent second stage 
of this year's two-part 11 per 
cent pay deal. 

British Rail, equally, seemed j 
unprepared to’ shift from its 
insistence that the 3 per cent 
would not be paid until the 1 
drivers agreed to more flexible 
working patterns. , 

The distance between the two 
sides was emphasised by Mr 
Derrick Fullick. Aslef's newly- 
elected president. He said he 
would never agree to a deal 
which compromised the union's 
traditional eight-hour working 
day. 

1 No more offers,’ coal miners 
told. Page 20 


Tate & Lyle gives site to Government 


BY PAUL HANNON 


envisages that Logica and ICL ; 
will both' market the Nexos 
word processor and will 
collaborate in the development 
of future versions, which ICL 
will have the right to manu- 
facture. It is expected that pro- 
duction will rise significantly 
from its recent annual rate of 
about 1,000 units. 

ICL has agreed lo acquire 
assets from Nexos, mainiy 
stocks, at net book value. It 
was unclear yesterday whether 
ICL would make any other pay- 
ment to the NEB in return for 
acquiring the marketing rights 
to tile word processor. 

Nexos's facsimile business is 
due to be acquired by Muirhead 
Office Systems, owned 75 per 
cent by Muirhead and 25 per 
cent by the NEB. Muirhead has 
agreed to transfer its document 
facsimile business to the joint 
subsidiary. 

It is understood that this 
agreement involves no cash 
transaction, though both the 
NEB and Muirhead plan to 
inject modest sums into the 
joint venture. 


TATE & LYLE has given its 
Liverpool cane sugar refinery, 
closed in April with Ihe loss of 
l,57o jobs, to the Government. 
Together with a cash sum to 
help the 21-acre site suitable for 
redevelopment, the gift is worth 
•about £lm. 

The refinery bequest was 
made following the appeal made 
by Mr Michael Heseltine, Secre- 
tary for the Environment, after 
tbe Toxteth riots in Liverpool 
last summer for private enter- 
prise to piay a major role in re- 
developing the erea's industrial 
fabric. 

Tate & Lyle is not disclosing 
the size of its ca^h contribution 
toward the site preparation 
work, and no value has been 
placed on .the industrial site. But 
tiie company put the total value 
at £lm. 

A large part of tbe 21-acre 
site will be demolished and re- 


built with modern warehousing, 
office space and possibly resi- 
dential units. Details have yet 
to be settled by English Indus- 
trial Estates, the government 
agency for tbe development of 
industrial sites in assisted areas. 

Before the Toxteth riots. Tate 
and Lyle had drawn up plans to 
divide and sub-let parts of the 
site — these were shelved after 
Mr Heseltine’s appeal. The com- 
pany said it hoped the new plan 
would help create permanent 
new empoyment in the area. 

Tate & Lyle’s move comes 
at a tune of depression rin the 
Liverpool industrial property 
market. A total of 5flm square 
feet of factors' an d warehouse 
space is vacant in the Wes: 
Merseyside district with ne 
tenants for seven buildings in 
excess of 100.000 square feet. 
Hie maximum rent obtainable 
now in the Liverpool commer- 


cial properly market is about 
£1.20 a square fool. 

Talc & Lyle stressed thsi 
the move was simply s -if: 
(since the company will ceare 
lo retain any interest in the 
site) and was an indication of 
the company's 114 year "Ion;* 
and fruitful association with the 
area." 

Losses at the Liverpool re- 
finery during its las; year of 
operation amounted to £10m 
against the company's total pre- 
tax profit in 1980 of £32.5m- 


£ Is New York 
- Jan. a 


provious 


Spot ft 1.9025 9055* 1.9195 921 
1 month 0.34-0.29 die 0.34-0.29 c!,« 
3 month* 0.75 0.68 dio 0.73.0.70 ms 
1 2 mo nths 1.00-0.80 dis 1.15 0.95 Hi: 


FACT 


CAPABILITY 


In the Eurobond issuing 
business, some banks produce 
continuous evidence of 

capability. In 1981,we ran the books 

of 1 3 public issues on the 
international capital market 
Credit Commercial de 
France is number five 
among international issuing 
houses on this basis. 



CREDIT COMMERCIAL 
DE FRANCE 


For long term finance, talk to CCFs New Issues Department We 
offer placing capacity, flair for innovation and active support on 
the secondary, market Telephone Paris720 9200,telex 620086. 


I 








Financial Times Tuesday January 12 1982 


EUROPEAN NEWS 




GrBes Merritt asks whether there will be an explosion in a key EEC market 

U.S. chokes off Europe’s steel safety valve 


Socialists 

assail 


Balsemao fails to curb 


THE SAFETY valve which the 
U.S. market provides for 
Europe's steel makers has been 
given a savage twist towards the 
“off ” position by the American 
producers’ sudden spate of anti- 
dumping suits. So the question 
now is whether, or even when, 
there will be an explosion in 
the EEC steel market. 


The present rescue plan, com- 
bining voluntary and mandatory 
disciplines, was horn out of that 
crisis, after several autumn 
months when it seemed that 
Europe’s steel industry was 
bent on the most brutal form 


linked prices are only workable 
for as long as the EEC steel 
Industry tolerates them. 

So far, apart from a few 
breaches which were countered 
by lines and occasional legal 
challenges, the system has been 


The odds on a collapse back 
into chaos and a damaging 
European steel prices war are 
not encouraging. If the U.S. 
law suits have their predicted 
effect of choking off steel 
exports across the Atlantic, then 
several million tonnes of un- 
wanted steel could soon be de- 
stabilising the delicate balance 
achieved over the past 15 
months in the EEC's hard-hit 
steel sector. 

The precedents for such a 
■breakdown of the European 
Commission's present regime of 
prices and production controls 
are daunting. The latest U.S. 
protectionist moves — through 
legal actions before the Inter- 
national Trade Commission in 
Washington — come just two 
years after the last onset of 
American anti-dumping suits. 
The backwash of that was a 
drop in EEC steel export^ to 
the U.S. from 7.4m tonnes in 
1979 to 3.9m tonnes in 1980. 
The price for European govern- 
ments was emergency bail-outs 
for many of their steel giants, 
as cut-throat price competition 
inside the EEC led to mount- 
ing losses for the steel makers. 


If the U.S. lawsuits hold back steel exports across 
the Atlantic, the several ■ million tonnes of 
unwanted steel could soon be destabilising the 
delicate balance achieved over the past 15 months 
in the EEC’s hard-hit steel sector. 


of ".restructuring’ 
market forces. 


through 


Using the “manifest crisis” 
powers that had. until October 
1980 been only the theoretical 
backstop of Article 58 of the 
European Coal and Steel Com- 
munity’s Treaty of Paris, 
Brussels took on the role of 
steel overlord to operate a 
system which meshes imposed 
quarterly production quotas for 
some 450 different steelmakers 
with agreed rises in EEC steel 
prices. 

The European Community's 
use of mandatory controls has 
helped to calm the volatile steel 
industry. But, like a new law 
which has to be acceptable to 
the citizenry if it is to be en- 
forceable, the quotas and their 


widely respected. During the 
second half of 1981, ordinary 
steel prices rose by around 25 
per cent, and those of some 
special steels by 40 per cent At 
the end of the first year of the 
crisis regime, EEC steel output 
had dropped by almost 5 per 
cent Less steel was command- 
ing firmer prices, and the steel- 
makers and their governments 
could agree that in principle 
susidies to the industry should 
halt In 1985. 


But the regime has yet to 
withstand the strains which a 
sharp reduction in exports to 
the U.S. will produce. A funda- 
mental worry is that, although 
the disciplines have yielded 
calmer conditions in the EEC 
market; they have not tackled 


the roots of the industry’s 
problems. 

The Brussels Commission's 
attempts to force plant closures 
and so reduce overcapacity have 
met with little success. Output 
of crude steel, now running at 
about 10.4m tonnes a month in 
the EEC. is at less than 60 per 
cent of installed capacity. 
Brussels’ aim -is to raise that 
to 85 per cent, but on its latest 
projections the 1980 capacity 
total of 202m tonnes a year will 
drop only 5m tonnes by 1984. 

Some figures suggest that 
restructuring is going ahead, 
such as the 66,000 reduction in 
the EEC steel workforce in the 
year since August 1980 to 
564,000, but the seeds of 
renewed market chaos remain. 

It is already clear that 
Viscount Etienne Davignon, the 
EEC Industry Commissioner, 
■does not view the current U.S. 
anti-dumping onslaught with, 
the same apparent equanimity 
as two years ago. 

At that time, he saw “no 
reason to panic,” while antici- 
pating that the then voluntary 
system of prices and delivery 
disciplines would need to be 
more closely monitored to avoid 
any possibility of a prices war. 

Now, he envisages a pro- 
gramme of emergency support 
measures which would at least 
shelter the EEC steelmakers 
from the worst effects of the 
U.S. actions and so shore up 
tile steel regime. 

With any luck, time is at 


least on the European Commis- 
sion’s side. Viscount Davignon 
pointed out yesterday that con- 
tinued weak domestic demand 
for steel in the U.S. meant that 
EEC steel producers had not 
been counting on sustaining a 
high level of exports there in 
1982. 

Although EEC steel exports 
had in the later months of last 
year risen to an annualised 
level of 6m tonnes, expecta- 
tions of a slowdown, coupled 
with projections of a significant 
improvement in European steel 
demand, could reduce the safety 
valve importance of the U.S. 
market, at any rate, said Vis- 
count Davignon. until the 
second half of 1982. 

EEC Industry Ministers will 
have their first opportunity to ; 
hear the Commission’s assess- 
ment of the new situation when 
they meet in Brussels tomor- 
row 

Viscount Davignon will no 
doubt reassure them that no 
split-second decisions on a new 
subsidies safety net are needed, 
but will probably also warn 
them that the position is never- 
theless grave. 

But in spite of the price rises, 
the latest of which this month 
boosts prices by a further 12.5 
per cent steelmakers are in- 
creasingly being squeezed by 
costs. Some special steel pro- 
ducers are claiming that the 
loss-making gap between their 
costs and selling prices is now 
20 per cent 


By Diana Smith - in .Lisbon 


THE POHTUGUESE Socialist 
Party has opened .a campaign 
against the centre-right coali- 
tion Government headed by 
Sr Francisco Finto Balsemao. 

Sr Balsemao’s weak and un- 
popular . administration, 
widely blamed for the 
country’s economic straits, is 
also, the taigef: of a barrage 
of strikes declared by pro- 
Communists union* with the 
aim of forcing a snap general 
election. 

Although there are im- 
portant local elections at the 
end of this year, a general 
election is not due constitu- 
tionally until 1984,. the year 
Portugal hopes to join the 
European Community. - 
. The Socialists' declaration 
of total opposition, backed by 
mass rallies and other politi- 
cal acts, coincides with the 
final stages of the review by 
a psrrfiamfjntB iy committee of 
the So cialist-leaning 1976 con- 
stitution. 

All parties have been work- 
ing on the review behind the 
scenes apparently without 
undue friction 

While opposition parties 
herald the imminent collapse 
of the Balsemao coalition, the 
Prime Minister himself is 
planning a marathon tour of 
»n EEC capitals from the end 
of January to press for 
accelerated negotiations on 
entry. 


budget 


BY WRIJAM DUUFORGE, NORDIC H5FFOR, N STOCKHOLM 


Could you save energy with a computer? 





THE SWEDISH Government 
will not keep its promise to cut 
its heavy budget deficit this 
year. The Budget Bill for the 
1982-83 fiscal year starting July 
1, tabled . yesterday by tiie 
minority Centre-Liberal coali- 
tion, shows a deficit- of SKr 
S2.6bn (£7.8bn) on total expen- 
diture of SKr 242.4b n. 

The deficit remains un- 
changed at just over 13 per 
cent of gross national product 
The Government’s avowed 
target was to reduce the deficit 
annually by 1 per cent of GNP. 

The fastest expanding- iteni 
in the budget is the interest 
payable on the state debt which 
is calculated to leap from . 
SKr 26-3bn to SKr 39.4bn in 
1982-83. Overall expenditure 
will rise by just over 1 . per. 
cent which represents a slower 
rate of growth. 

When the krona was de- 
valued in September, the 
Government reiterated its 
intention of cutting projected 
budget expenditure by SKr 
12bu in 1982-83. The actual cuts . 
shown amopnt to SKr 9.7bn. 

Mr Rolf Wirten, the Budget 
Minister, nevertheless insisted 
yesterday that the budget 
represented a genuine turning 
f point in public spending trends 
which would become apparent 
next year. 

The curbs on spending — 
mainly on local authorities, 
richness benefits, unemploy- 
ment relief, schools and 
housing grants — would amount 
to SKr 13.4bn in the 1983 
calendar year, he said. 

I ' The Government counts on 
support from the Moderates 
(Conservatives) to pass the 
separate legislation needed to 
implement several of the curbs. 

Mr Olaf Palme, the Social 
Democrat opposition leader. 


MS 

Cm 



Palme . . . bitter criticism 


described the budget as pitiable 
criticising harshly , some of ttu .. 
cots in social benefits. The 
Social Democrats, who expect t* 
return to power .after the-,-, 
general election in September ( 
argue that some increase ii-*“ 
taxation is .inevitable. " r. 

The only tax increases in thf‘ L ; 
budget are bn petrol and hear 
ing oil The ruling Centre am,- -- 
liberal parties agree with tht 
Moderates that higher taxes wiT 
produce no real increase ic 
budget income. 

Government strategy, out 
lined in the 19S2 finance plar 
accompanying the budget Bill 
relies on the boost to export* 
and industrial output expected 
to result, from the September 
devaluation. The plan foresees 
a 7 per cent improvement Jr 
Swedish industrial cocmpetitive- 
ness in 1982, a 7 per cent growth, 
in - export volume and the ' 
recovery of some 4 per cart of 
foreign market shares. 


THE RACE FOR PRODUCTIVITY 


Labour costs worry 
W. German employers 


®Y JONATHAN CARR 'IN BONN 

THE ANNUAL wage negotia-. Last au tumn, 
tions jn West Germany’s- key hovering anran 
metal-worlang sector begin was little difl 
today, with_. .the trade- unions - t^o, 

4 nod * r '^stronger - pressure' tbanL- / However,’ the 

ep *T *° m the , to About relative 

settle for an increase well below 1 -unless proto 
the (rate of inflation. -••••- into account to 

shows hourly <w 

compare with Its mam rivals in each of tin 
in terms -of; industrial labour that Is: : fhe_to 


Last autumn, with the dollar 
hovering around DM 2.28, there 
was little difference between 
- the two. 

. Hdwever, .the figures say little 
;$6buf relative competitiveness 
unless productivity is taken! 
-.into • account too. 'Column .threes 
shows hourly output per worker 
in each. of the .20 countries— * 
' that is, /the^otal value added = 





LABOUR COSTS AND- productivity. IN THEMANUF 
INDUSTRY OF MAJOR .COUNTRIES* V; 


Hourly labour 


Hourly 
labour costsf 
. as Index 


Belgium 

Sweden 

W.Germairy 

US. 

Netherlands 

Italy 

France 

japan 

UK 

Spain 


coststin 
- in D-Marks 

(W. Germany 
= 100) 

25J0 

- 102 

7SJO 

101 

25.00 

100 

24 JO 

98 . 

24.10 

94 • 

T9J0 

80 

18.40 

74' - 

16JO 

45 .. 

1420 

57 

12J0 

so 


;■? Hourly 

prodnc&rdyt lafwr«o«ts§ 
as index 'w'mdex 



89 

ZJ- 

100 . 
T0I . 

n - 

£ * 

7* ■ » 

SO - 
47 


benefit*-” JOutput per 

§ Column two d^ded by 

— - - • ' ■ ■ ' Source: DraadoarBtni 


Y)u can ask Ron Akass. 
He’s IBM. 


“My present job at IBM resulted 
fiomthemei^cWchmtheUK. 

A few years ago, I became 
environmental programmes 
coordinator at our headquarters in’ 
Portsmouth, responsible for eneigy 
conservation in our buildings. - 
My manager here encouraged me 
to explore all possible solutions, 
like businesses all over Britain, we were 
starting to wony seriously about 
cutting energy waste. 

be careful with the, way they use K ghfc . 
and to accept slightly cooler offices, 
we took a look at a potential source of 
help that was right under our noses* 
ffiecomputen 

- ft was a real breakthrough. 


~We programmed computers to 
analyse energy use and to warn us 
wheie and when we were overstepping 
the mark The computers did the dull 
work did the thinking. 

Same af our computers were 
set energy targets and prog rammed to 
spread the load sensibly.^ even 
round a way to channel the heat 
generated by our computers into the 
central heating system. I had my 
doubts at first, but was surprised by 
the results. 

"WeVe already cut our energy 
bill by five percent ayear forthepast . 
six or seven years. Nowwe’re passing 
onwhatweVeleamedtoofher 


After all, it’s a problem that 
affects everyone in Britain, not just 
people in business.* 

Ron Akass, IBM UK 


o 15,000 jobs in over 50 locations 
O Two factories in Greenock 


O A major developmentMoratoiy 
nearWinehester 

O £452mHlion exports in 1980 
O £132 mUtion invested in 1980. 


costs and productivity? A recent 
report by the Dresdner Bank 
shows that while the West 
Germans are still high on the 

international league table.” 
there is no ground for com- 
placency. 

Of the nine other 'Countries 
cammed, four of themWapan, 
S“ France and the 

Netherlands— -have lower unit 
labour costs than West Ger- 
many. 

The table shows that in terms 
of hourly labour costs alone 
(including- social charges and 
ff“2e benefits). West Germany 
is tiurti highest after Belgium 
Md Sweden, while Japan, 
Jfrjtain.and Spain bring up the 

Compared .- with ■ the position 
f 60 V th ® in °st striking 
change has. been between -w3t 
Germany and the TLS. 

,J?L MM, hourly 

teboUTttMrts in West Germany'. 

tw j* DW 23L40aiid 

those m the U.S. at DSt-18^0 

J*”® do&iKDeutsche 
mark exchange rate of. DM; 0^2. 


hi industry divided rby ' the; 
.number of man-hours worked; 

fije hourly Jabour coslsj 
the bank has taken the different: 
countries' data, converted it td 
a - common currency (the? 
Deutsche Mark) and expressed; 

as ~ an index -.<witb. Wesri 
tjermany equalling 100). By; 
tins measurement , the- U.S.3 
emerges as productivity. kto&5 
Jhe West Germans closed 

behind; . : 3 

. Finally, column four gives; 
what the Bank catis. ** the brirfs 
test, from -a: labour point 1 of 
of a countryV^ eon*^ 

Petiveness --Jin' international? 
Jjrede» regardless of currency ' 

movements.” 

diSaST* i^Wy'WRwr costs ^ 
^^ Productivity? 
index of unit" 

tiie W w^ Q ^~" where ’ 88 noted,; 
West Germans cHnrti •; 



PttbJishttf. d.Bsi 

Second* 1 P«r mnom. 

Vo** m paid it mw 

contras. *' *° d at "ddtomil moHInfl 


companies. .. 

The people Fm woridng with 
are rea% emhusiastic about ^ using . 
sophisticated computer technology 
to help solve a major problem 
lib the energy shortage. 


ExterndGonmumcations 
Department, IBM United Kingdom 
Limited, E O. Box 41, North Harbour, 
£ortsmauth,Hants:P06 3AU 


on 


require the 

DlRECTCWS^MCMnVE CUNWG 

Sara' 1 ' 






. 100,000 Europeans work firrlBM 


v 1 r" P -. r : • 

V Tba ♦fapgtug - = t. * 

„ B Wu^tard Catering 

61 Pont StrMt^ l&iiglrtabHd^ 

*-***** 




*4 








ChristopherBobinski reports from Warsaw on the mood of deep pessimism pervading Poland 


fearfully towards neo-Stalinist future 


AFTB.RFGUR wetjfcs ofTjiaTtiai 
.law. everyday. Safe. ia. Poland is 
slowly TESurniiig. as .the Yoili&ry 
autooritiejrreopeai^^ tele- 
Phone . lutes- and ; start :to 1 Kfr 
their - Draconian; -restrictions.. 
But ‘ the pan; twhaelr fell over 
Poland on DecembeislJ- has oaot 
l^ted and - most" Poles’" .took 
forward., bitterly ; to V.-neo- 
Stalinist .daritae&r. j: j-v;- 
iathUectuafc ...are - openly 
pessiinasldci alw^ '-the future^ 
Journalists who: are- being sub- 
jected -to'the niost- thorough of 
-retina ro tbe liberai. Press of 
r fhfr-; post-19S0 7 August period 
■Workers ■ deprived .of:; . thehr 1 
n^its, with : the’Solidarity Tuiioit 
suspended.', and =: Jfcs . ■ leaders 
interned; ate ,'sBeht ' 'tod r, jinifii 
trustfiiL,. 


airestfe and trials of the 
lesders^of -the strikes -against 
:martial i-law. last month, the 
sacldngs .and ^pressure to make 
l.oyatty. ; ^«^r?tions irt industry 
itayif^aB led -to deep resent- 
'-ment, The ' restrictionk - -oh 
woricere’ freedoms' imposed by 
the. militarisation of key indus- 
tries and the consequent humili- 
ation can only: lead to another 
outburst of anger attune time 
in the -future. . 

, ' Farmers . are tdso wary of the 


threat of compulsory deliveries 
1 of . farm produce to the state 
. and.- are-waiting to. see what the 
- new. regime . .will bring. Mean- 
while, -wles to-, the; state -have 
.not '.increased enough, to make 
'any. difference to the sparsely- 
supplied, shops. - • 

; If» as , the authorities insist, 
the imposition of martial law 
; was essential- to. counter a threat 
-to the system on - the part of 
Solidarity, -the move by itself 
has zissblyed /-none of the 
-Whoniic and. political problems 
Poland \ has faced - since 
December J970„; .- 

:.'rl n- many . ways' -toe '-'problems 
have becpme : even' more intract- 
able since December 13 an dthe 
ri&k now i& of ' a. virioisu circl, 
wltltrepression. breeding further 
, repression and discontent The 
longer martial- law lasts,- the 
more difficult it- may become to 
return .-to cryii rule and civil 
rights without an outburst of 
anger at the injustices .and pain 
• of the^military cfampdown. 

What- is more, the military 
crackdown, and consequent 
bitter divisions within the Com- 
munist party itself 1 lias given a' 
dominant role " to the most 
reactionary sections- of the 
estaMishment. Tbe real risk now 



Poland’s military authorities 
have hinted that they may 
start excluding Mr Lech 
Walesa (left). Solidarity's 
leader, from their plans for 
-a more amenable union move- 
ment, according to ' well- 
informed officials quoted by 
Renter in Warsaw. This con- 
flicts with earlier reports that 
the military had hoped to 
persuade Mr Walesa to 
resume his Solidarity leader- 
ship once the movement had 
been trimmed of radicals and 
those considered “ anti- 
communist.” 

On January 8, a close 
adviser to Gen Jaruzelsld, 
said on Danish television 
that , M Walesa would soon 
return to political life as a 
trade union leader — X 
emphasise, as a trade union 
leader." 


is that the execution of martial 
law-wil Islip incerasingly from 
the graps of the army and into 
the hands of the police. 

The lack of political solutions 
to the crisis furthermore is 
expetced to lead to both open 
end clandestine resistance which 


will, in turn,' only strengthen 
the naturally repressive reflex 
of the Comunist system. 

Young people .both students 
and workers, already talk freely, 
prebaps too freely, of conspiracy 
and underground resistance. But 
such movements are wide open 


to infiltration 

The break-up of such infil- 
trated underground movements 
will provide additional ammuni- 
tion for conservatives seeking 
to maintain controls as long as 
possible. Many, perhaps most 
. Poles, feel that what the 
country now faces is a slide 
info a form of neo-Stalinism. 

The Roman Catholic Church, 
meanwhile, seems .prepared to 
give General Wojcieeh Jaru- 
zelski the benefit of the doubt 
The meeting on Saturday 
between Archbishop Josef 
Gleznp and the General shows 
that the Church has decided to 
give the military authorities 
time. 

In an important sermon last 
week in Warsaw’s St John's 
Cathedral, the Archbishop for- 
bade Catholics from answering 
violence with violence. This 
was aimed at helping to create 
an atmosphere in which the 
martial -law authorities will be 
able to lift restrictions. The 
Church feels this will not hap- 
pen if the authorities feel 
threatened. 

The Church is also predict- 
ably unhappy about the sacking 
of people deemed disloyal by 
the authorities, the tone of 


official propaganda and, last but 
not least, the conditions and 
fate of the thousands of 

internees' still being held 

... But there is a considerable 
risk that this kind of private 
diplomacy will lead to a fall in 
the standing of the Church 
leadership. It could also find 
itself being used as a pawn in 
a game to ensure continued sub* 
mision to martial law although 
the prestige of Pope John Paul 
both inside the country and 
abroad helps to ensure against 
this. 

The threat of economic sanc- 
tions being imposed by Western 
Europe as well as the U.S. 
worries the authorities. They 
are well aware that the econo- 
mic crisis is so deep that 
Comecon can do little to help. 

On January 20, Gen Jaruzel- 
ski will have the opportunity to 
declare his future intentions in 
an important speech in Parlia- 
ment. He is expected to visit 
Moscow for consultations 
before band. What Poles are 
waiting to see is whether the 
military intend to try to reach 
an agreement with Solidarity or 
force the working class back 
into some form of the dis- 
credited official branch unions. 


Yugoslav party adds voice 
to European criticism 


Severe flooding threatens vital ofl pipeline 


BY LESLIE COUTT IN BERLIN 


BY PAUL LB4DYAL RECENTLY IN BELGRADE 


LEADERS OP the Yugoslav 
Communist Party have joined 
the Italian and Spanish parties. 
. in strongly criticising the miii- 
itaiy coup 1 in "Poland. ’ This 
.follows . growing., protests by 
intellectuals and younger Com^ 
mnnist party members about 
Yugoslavia's originally low-key 
" response. . 

'-'The Yugoslav - party blames 
.the Polish crisis on Poland’s 
;; Communist Party for allowing 
its authority, to drain away by 
Lite actions following the crises 
. o£;i970, 19T6 and 1980. TMs led 
to a vacuum of power and 
authority, eventually filled , by 
the army as the only real instru- 
ment of power left . 

Hie leadership o£ the Yugo- 
slav party .has tome in v for 
increasing criticism by interior?: 
trials and younger members -for; 
being both ^too lukewarm", and 
“too -late” in stating its views 
on the Polish events.. Even the 
latest ' party resolution : which 
was passed by the central com- 
mittee before Christinas: and ; 
approved, bjr the', party 
praeszdjohr on' "January fi s has - 


not - been made public t>ut 
merely distributed to the 2.2m 
.'members. This contrasts 
strongly Mrith the sharp .and 
' immediate public condemnation 
.'which followed the Soviet 
invasion of Czechoslovakia 
. A • senior Foreign Ministry 
official explained that Yugoslav 
restraint' in its official state- 
ments reflected the hope that 
Soviet intervention could be 
avoided and 1 that. General 
Wojctech ‘ Jaruzelsld . might 
succeed in ‘ stabilising the 
situation. There h consider- 
able .scepticism in Belgrade, 
however, .about the military 
■ leadership's, ability to reintro- 
duce - institutional reforms. 

Robert Graham writes from 
Madrid: Sr Santiago Carrillo, 
leader of Spain’s Communist 
Party, said yesterday the crack- 
down in Poland had' exposed the 
bankruptcy of efforts to export 
tiie .Soviet model of society. 
Communism as practised in the 
Soviet Union, he said/ could not 
he eonsideretf a model for the 
working classes as a whole, and 
even tois in Western Europe 


AS POLAND'S military govern- 
ment struggled with the 
economy and a demoralised 
population, severe weather 
dealt further blows to the 
country. 

The most serious flooding in 
memory hit the Plock district 
west of Warsaw, endangering 
the vital pipeline which sup- 
plies oil from the Soviet- Union 
to both Poland and East Ger- 
many . 

- The city of Plock, 80 kms 
from .Warsaw is the site of 


Poland’s largest oil refinery as 
■well as plants producing nearly 
all the country's petrol, diesel 
.pil and chemical feedstock. The 
governor of Plock district de- 
clared a flood emergency after 
the Vistula river became 
blocked by broken ice. 

Radio Warsaw, monitored in 
Berlin, said that more than 
13,000 people were evacuated 
and an estimated 17.000 hec- 
tares of land were inundated. 
Livestock was also moved to 
safety while . helicopters 


dropped food and fodder into 
isolated areas. Agriculture is 
likely to suffer serious losses. 

The most ominous threat, 
however, was to the pipeline 
bringing Soviet oil into the 
Plock refinery and taking it on 
to the East German refinery and 
petrochemical centre at Schwedt 
on the Oder river. 

Warsaw Radio said that 
Genera] Florian Siwicki, 
Poland's deputy Defence Minis- 
ter. had taken charge? of the 
rescue -operation involving 


3,000- soldiers, policemen and 
firemen. He is a member of 
Poland's ruling military coun- 
ciL 


Flooding also threatened the 
Szczecin district and the Elblag 
area east- of Gdansk. 


Warsaw Radio said that 
Poland's railway network was 
hit in many regions because of 
snowfalls and frozen points. 
Coal transport from Silesia to 
electric power stations was dis- 
rupted. 


Dresdner Bank holds talks in Warsaw 


BY PETER MONTAG NON, EUROMARKETS CORRESPONDENT 


DR HANS FRIDERICHS, chair- 
man of West Germany’s 
Dresdner Bank, travelled to 
Poland yesterday for the first 
face-to-face discussion berwen 
the Polish Government and a 
Western creditor bank since the 
imposition of martial law on 
December 14- 

Dresdner Bank officials said 
that the. visit would he brief 
and that it followed 2n invita- 


tion from the Polish side. Other 
bankers involved with Poland 
said it could be the first step 
towards . resolving the impasse 
that has developed over 
Poland’s efforts to res-negotiate 
its debt to commercial banks. 

An agreement to re-schedule 
some $2.4bn (fl.3bn) of debt 
falling due last year was near- 
ing completion when martial 
law was imposed. Since then 


Western banks have been ham- 
pered by communications diffi- 
culties with Warsaw and con- 
cern has grown about overdue 
interest payments. 

News of Dr Friderichs' trip 
surprised some officials of other 
banks who have been spear- 
heading debt negotiations with 
Poland in the form of a 19-bank 
multinational task force. But 
the outcome of his visit was 


being keenly awaited in banking 
centres. 

In the absence of indications 
"from the Polish, side. Western 
banks have been attempting to 
complete the administrative 
details of the rescheduling 
agreement, but pressure has 
been growing for renewed 
direct contact with the Polish 
Government without which little 
else can be done. 


Commercial TV 
networks take 


shape in Italy 


BY RUPERT CORNWELL IN ROME 


TWO NEW and powerful nation- 
wide television groupings 
have emerged from the jungle 
of Italian private television. 
They constitute a further 
step towards - Italy adoption 
of commercial television net- 
works along North American 
lines. 

The newcomers are backed by 
two of the country’s biggest 
Press and publishing groups 
Network Four, with 23 
Stations, is 60 per cent con- 
trolled by Mondadori, while 
Italia Uno, with 18 affiliated 

. stations, has been launched by 
the Rusconi publishing house. 

Their arrival represents a still 
more serious challenge to 
what remains of the monopoly 
once held by the RAT state- 
run broadcasting service. The 
Government has repeatedly 
failed to come up with its 
long-promised draft legisla- 
tion to regulate the develop- 
ment of private television in 
Italy. 

Network Four and Italia Uno 
will bring the number of such 
groupings to 'three. They join 
the pioneer of networking, the 
Canale 5 operation run by Sig 
•Silvio Berlusconi, the 
Milanese property and Press 
tycoon. This now has 27 
associated stations. 

They plan to offer up to eight 
hours daily of simultaneously 
transmitted programmes by 
their various stations, scat- 
tered up and down, the coun- 
try, from Friuli Venezia 
Giulia in the north-east right 
through to Sicily and Sardinia 
in the south. 

To avoid infringement of a 1981' 
Constitutional Court ruling 
which forbade single nation- 
wide transmission in competi- 
tion with RAL the various 
affiliates will each send out 
identical pre-packed record- 
ings at the same time. 

The emphasis, executives of 
both groupings admit, will be 
on sport, films and imported 
television 

These latest developments in 
the fiercely competitive pri- 
vate television industry are 
further evidence of its grow- 
ing importance. At peak 
hours, the private channels 
between them can canture up 
to 40 per cent of the total 
audience. 


The sector in recent years ha; 
constituted by far the tastes 
growing outlet for advertis 
ing expenditure. Last yea; 
total estimated spending hat 
risen to L190bn (£82m) fron 
only L14bn (£6m) in 1977 
This year, on current trends 
toe private stations couli 
attract more advertising thai 
the three national channel 
of toe RAT combined. 

Canale 3. which has investee 
heavily in the purchase o 
top sports and film attrac 
lions, expects to spen< 
LlfiObn f£69ro> this year 
Rusconi's budget totals LflObi 
<£26m) while Network Foui 
will he spending “at least' 
L50bn (£21m). 


At peak hours, the 
private channels 
between them can 
capture up to 40 per cent 
of the total audience. 
The sector in recent 
years has been by far 
the fastest growing 
outlet for advertising 
expenditure. 


The emergence of the network 
is making life harder for thi 
smaller, purely local, station, 
whose number at one stag* 
topped 500. Rising costs an 
forcing them increasing!; 
either to contemplate extioc 
tion or join forces with ; 
bigger brother. 

The process is generally see 1 
as inevitable — at least in lb 
absence of legislation. Bu 
.many .regret that a mai. 
casualty of the trend will b 
that very “pluralism of it 
formation" which was one o 
the most attractive feature 
of Italian private TV in il 
early phase. 

The suspicion is also stron; 
that the growth of the nei 
works will favour greater it 
volvement by the politics 
parties, especially when ger 
eral elections may not be fa 
off. As it is. around 60 pe 
cent of Italian private V 
stations are reckoned to b 
owned bv Interests linked 1 
the Christian Democrat Part- 



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4 




Financial .Times Tuesday Januazy ^ 1382 


AMERICAN NEWS 


Reagan rules out 


fighter aircraft 


sale to Taiwan 


Ma Bell rings the changes 


BY PAUL BETTS IN NEW YORK 


BY REGINALD DALE, US. B3IT0R IN WASHINGTON 


PRESIDENT Ronald Reagan, in 
a major and controversial 
foreign policy decision, has 
given a fiat no to Taiwan's 
request for advanced U JS. 
fighter aircraft 

The move, which is likely to 
enrage many of Mr Reagan’s 
Right-wing supporters, will be 
widely seen as designed to help 
restore Washington's strained 
relations with Peking at a time 
of growing international ten- 
sion. 

Announcing the decision, the 
State Department said it fol- 
lowed a review over many 
months in which “many factors" 
had been taken into account, 
but denied that events in 
Poland had anything to do with 
it The main consideration was 
simply Taiwan’s defence needs, 
officials said. 

The Department said these 
needs could be adequately filled 
for the foreseeable future by 
the replacement of Taiwan's 
existing fleet of ageing F-5E, 
F-100, and F-104 fighters. With 
“comparable" aircraft. 

The joint U-S.-Taiwanese pro- 
duction line making F-5E air- 
craft in Taiwan would also be 


extended beyond its originally 
planned nnd-1983 shutdown 
date, it said. 

No decision, however,, had 
been made to upgrade file F-5E, 
one of the options that had 
been under consideration as a 
means of giving Taiwan a better 
fighter without it being a 
totally new model The question 
was no longer under review, 
officials said. 

The State Department said it 
knew of no limits attached to 
the number of “comparable” 
aircraft that the Taiwanese 
could acquire, nor of any new 
time limit on the run of the 
F-5E co-production line. 

Officials stressed that the 
decision did not mean any 
change in the Administration's 
policy on arms sales to Taiwan. 
The U.S. had supplied equip- 
ment for Taiwan's self defence 
in the past' and would continue 
to do so, they said. 


Mr Reagan: flat rejection 


though it is far from clear how 
Peking will react 

The Chinese have been warn- 
ing in recent weeks that they 
oppose any American arms 
sale to Taiwan in whatever 
form. They have threatened to 
downgrade relations with Wash- 
ington if a sale goes ahead. 

Mir John Hoidridge, the 
Assistant U.S. Secretary of State 
for Asian Affairs, went to 
Peking at the weekend to 
inform the Chinese authorities 
of the decision. 


Critics, however, will regard 
the decision as a betrayal of 
Taiwan by a President who was 
meant to be one of its firmest 
supporters in order to curry 
favour in Peking — even 


The State Department said 
the Administration was 
“obviously” looking for good 
relations with Peking and 
wanted to discuss international 
affairs with the Chinese “at an 
authoritative level** 


If the fighter decision con 
tributed to good relations with 
Peking, that was all to the good, 
a spokesman . said . 


Pressure to raise taxes 


BY AMATOLE KA1ETSKY IN WASHINGTON 


PRESSURE ON President 
Reagan to increase taxes in the 
19S3 budget mounted yesterday 
as Republican congressional 
leaders went to the Wferte House 
for consultations on 4he Presi- 
dent’s budget statement, due to 
be delivered to Congress cm 
February 8. 

The President, talking to re- 
porters a; the weekend, made a 
point for the first time of not 
rifling out tax increases. Be 
■insisted, however, that (he would 
“ do nothing that will interfere 
with the incentive tax pro- 
gramme that has been adopted 
to increase productivity” 

This suggests that, while his 
(income tax reductions remain 
sacrosanct, big increases in in- 
direct taxes, most probably on 
alcohol tobacco and petrol, may 
be on the cards. There is talk 
of doubling some excise taxes 
which have not been, increased 
for more than. 10 years. 


Many Republican Congress- 
men believe that the Adminis- 
tration must produce a credible 
programme for reducing budget 
deficits below $100bn in 1983 
and 1984, compared with current 
unofficial forecasts of 150bn be- 
fore the mkl-tenm election cam- 
paigns get under way. Most 
politicians here, as weh as 
economists, now believe that 
this can only be done by raising 
taxes. 


In addition to excise tax in- 
creases, other options being can- 
vassed are a windfall profits tax 
on natural gas companies, com- 
bined with faster decontrol of 
gas prices and Changes in the 
corporate tax lams. 


Gas decontrol could increase 
revenues by about $30bn under 
tiie existing tax regime, as a re- 
sult of higher profit taxes, mid 
by another $20bn if a windfall 
profits tax were krfrodaiced. 


Sharp rise in 
Canadian 


unemployment 


By Victor Mackie in Ottawa 

THE NUMBER of unemployed 
in Canada jumped by 59,000 
during December to 987,000, as 
the economy continued to 
weaken. 


The country’s seasonally 
adjusted unemployment rate of 
8.6 per cent during the month — 
up 0.4 of a percentage point 
from November— matched the 
1978 record. 

The latest decline was blamed 
mainly , on lay-offs in manufac- 
turing industry in Quebec and 
Ontario. 

Canadian economists said the 
real unemployment level far 
exceeded the official level, 
because some people who had 
stopped looking for work were 
not “officially" considered un- 
employed. 


“ TO BRING the benefits of the 
information age to America, the 
Bell system had to be restruc- 
tured.” TMs message from 
Mr Charles Brawn, chairman of 
American Telephone and Tele- 
graph, the telephone company 
wMdh owns the vast Betl 
system, was carried in fuH-page 
advertisements in most news- 
papers in the U.S. yesterday. 

It made the case as simtfly 
as possible for the decision of 
AT and T. familiarly known to 
all Americans as “ Ma Beil,” last 
Friday to settle its historic 
anti-trust dispute with the U5. 
Justice Department The huge 
telephone company justified the 
decision to agree to divest itself 
of Sts 22 local operating com- 
panies, vflbdch provide SO per 
cent of “ POTS ’’ or “ plain old 
telephone services " to Ameri- 
cans, on the grounds that a new 
era in world communications 
had dawned. 

AT and T could no longer sit 
back on its time-honoured tele- 
phone monopoly watching a new 
breed of high technology com- 
panies, some as large as IBM. 
threatening to make major in- 
roads in the new, dramatically 
■changing world of international 
telecommunications, the com- 
pany said. 

But the persuasive message 
from the chairman of the tele- 
phone company was directed as 
nmdh to the company's 3m 
shareholders as to the U.S. con- 
sumer and the political estab- 
lishment. 

After the initial shock and 
general amazement caused by 
the settlement on Friday, 


analysts, consumers and politi- 
cians all took out their calcula- 
tors to work out the likely 
effects. Even before the dust 
(had settled, the agreement, 
cheerfully welcomed by UB. 
business, was in the middle of 
Afxfiiiical storm. 

For the average American, the 
settlement will spell higher tele- 
phone charges. For years AT 
and T has subsidised its highly 
capital-intensive local telephone 
operations with the far more 
profitable long lines operations, 
which under the settlement it 
wtQ retain and which offer long- 
distance services between states 
and to other countries. 

The presidents of Bell operat- 
ing companies were quick to 
point oi a that telephone rates 
locally would probably dou ble 
over tiie next five years without 
the subsidies from the parent 
company. Politicians rnune- 
dltely started to e x pr ess their 
concern and reservations over 
the deal. Even Senator Bob 
Fackwood. the Republican chair- 
man of the Senate Commerce 
Committee, said he was very 
worried about the impact of the 
settlement on telephone rates. 

The settlement still has to be 
approved by the Federal Court 
which has been bearing the 
case, and faces review in Con- 
gress, which is now in Che pro- 
cess of considering new 
telecommunications legislation. 

The new legislation has been 
moving along the same lines as 
the settlement, whereby Ma Bell 
would be allowed .to enter new 
telecommunications fields which 
are not regulated in return for 


safeguards to prevent £be tele- 
phone company from taking ad- 
vantage of its large protected 
telephone market 

But Congress now feces an 
eve mnore delicate problem. 
Competition in industry has 
always been an emotional issue 
in the TJ.&, but the question of 
local rates has an explosive im- 
pact, especially at a time of 
recession, budget cutting and 
reductions in federal support to 
the US. welfare state. 

As a result. Congress is likely 
to turn its attention more to the 
problems the settlement will 
cause to local ' telephone rates 
than the broader Issue of tele- 
communications in coming 
decades.. 

3fa Bell and its current fens 
have strived in the past 48 
hours to reassure the general 
public that divestiture of the 
local companies will not neces- 
sarily mean staggering in- 
creases in local telephone 
charges. 

Long distance services have 
been profitable, but will now be 
open to more competition. 
Although the Bell system cur- 
rently offers nearly 97 per cent 
of U.S. long distance services, 
tiie fact that it will no longer 
be called on to subsidies local 
services means that long 
distance rates will probably de- 
cline. In any event, Ma BeH 
has already warned that local 
rates were bound to increase 

The controversy also con- 
cerns the related issue of tele- 
phone services. Weaker local 
operating companies, no longer 
sheltered by Ma Bell’s umbrella, 


might no longer be able 
maintain the standards Ameri- 
cans have grown accustomed 
in telephone services. However, 
the Bell system claims stan- 
dards should not suffer, since 
local telephone services will be 
enhanced by new competition. 

It is already clear that the 
settlement Is developing into a 
political football The contro- 
versy seems bound to delay the 
intended reorganisation of the 
Bell system and the divestiture 
far beyond the 18 months set 
in the areement with the Jus- 
tice Department 

Moreover, Congress is already 
considering modifications in its 
proposed changes in telecom- 
munications legislation designed 
to hold down future increases 
in phone charges. It is likely 
to throw a considerable number 
of spanners in the way of the 
settlement which may take as 
long as six years to effect 

From the standpoint of the 
White House, the Pentagon and 
the Commerce Department, the 
settlement represents an accept- 
able compromise. The Pentagon 
h as already indicated It is satis- 
fied with the agflfeement while 
the probusiness Reagan Ad- 
ministration regards the settle- 
ment as making AT and T a 
more competitive — if somewhat 
leaner— concern. . 

In a sense, the decisions of 
the last few days represent a 
hig victory for big business in 
the U.S. That in itself is likely 
to spice even further the poli- 
tical battle already shaping up 
in Congress. 

Lex, Back Page 


KINGSTON’S BID FOR OVERSEAS BUSINESS 

Jamaica claims investment successes 


BY CANUTE JAMES IN KINGSTON 


THE Jamaican Government is 
claiming success tin its major 
campaign to attract overseas 
investors. 

The Jamaica National Invest- 
ments Promotions Ltd (JNIP).- 
the state agency responsible for 
monitoring and encouraging 
new investment in the country, 
says it is reviewing more than 
500 ■ investment proposals— 
mostiy from North America and 
Western Europe — -with a poten- 
tial value of more than. $lbn 
(£5 19m). 

More than 20 of these have 
been implemented over the past, 
few months and the agency 
expects to receive the rest 
during the next two years. 

The Government regards 
search for new business as an 
integral element of Its pro- 
gramme to provide a stronger 
base for the economy. 


Government ministers and 
private sector business groups, 
who have been exploring the 
possibilities of investments 
from the U.S., Canada, the UK 
and West Germany, say mere 
Is no lack of interest 
Washington has been actively 
trying to make Jamaica a show- 
piece of how private sector 
initiative can build an economy 
and. the Jamaican Government 
is (hoping for an increase in the 
pace of new enquiries. 

• “The infrastructure we offer 
investors is superior to that 
offered by many other develop- 
ing countries” said Mrs Corrine 
McLart, managing director of 
the JNIP. Speaking of the possi- 
bilities for North American and 
British investors, she said: “We 
share a common language and 
a history of business relations. 
This gives us an advantage over 


several countries in Latin. 
America. We have had en- 
quiries from several firms 
which are operating in some 
Latin countries, hut which want 
to relocate here because of our 
more stable political environ- 
ment." 


has fallen victim to rising oil 
prices, international inflation, 
production shortfalls in its 
major exports and only margin- 
ally increased prices for its 
products. 


The Government has offered 
potential investors a range of 
comparatively generous tax 
incentives, including tax holi- 
days. Mr Hugh Shearer, the 
Foreign Trade Minister, said 
however, , that these incentives 
can be offered by any country. 
Jamaica’s advantage, he said, 
was in other areas which 
created a favourable climate for 
business. 


Jamaica’s unemployment rate 
is put officially at 26 per cent, 
and there is a gap of 8750m 
(£389m) in its foreign exchange 
budget. These two problems 
have bedevilled the economy for 
the past eight years. AIL the 
island's business transactions 
are being floated through just 
over $lbn in loans for this year, 
held together by a three-year 
loan facility of $650nr£rom the 
International Monetary Fund. 


. Jamaica badly needs fresh 
foreign investment because its 
economy, like that of many 
other poor developing countries. 


The Jamaican Government's 
high expectations have not been 
dampened by economic troubles 
in the countries from which it 
is seeking investments. 


U.S. ‘may 

soften 


stance -on 


Salvador 9 


By Robert Graham in HaW 
•THE ONTTED STATES may 
soften its stance <ra H 
Salvador and could 
negotiations with the gimffia 
forces if pre mis ed elections 
go ahead, 

Felipe Gonzalez* th* spanan. 
Socialist Party leader. 

Sr Gomalez was speaking 
on his return to Spa™ from 
Washington where he me* 

Mr Alexander Haig, the US* ■ .. 
Secretary of State. 

Sr Gonzalez was discussing 
the situation in. Central 
America in ** ***£&,£ ‘ 
vice-president of the Sodalbt _ 
International. 

Before visiting the 
undertook a mission in tm , 
same capacity to Panama, 
Nicaragua, Cuba and Mexico. •. 

The Socialist International 
has be«* particularly active . 
in trying to ensure a b etter . 
dialo gue between Washington, 
and the more 'radical states ■: 
in the region, especially 
Nicaragua and El Salvador. . 

Sr Gonzalez is understood - 

to be acting as an I nter- 
medlary to try to make surer v 
that valid elections will 'hit 
held in El Salvador. He said • 
to reporters on Sunday in 
Madrid: " Underlie military 
dictatorship, elections in ET 
Salvador would be a fence 
which all the world could see .. . 
for themselves. 

“ A solution to the situ- 
ation in El Salvador mast. 
Inevitably be by negotiation , 
between fixe guerrillas and > 
the present military Junto 
running the country-** 


From bis conversations 
with Mr Haig, he felt the US. 
did not discount the possi- 
bility of negotiating with the 
guerrillas in the wake of 
elections. However, this may 
be an over optimistic inter- 
pretation of the US. 
Administration’s view. 


• Seventy governments and 
public figures from Europe 
and Tjrffn America have been 
invited to observe the March . 
Sections, according to Sr 
Fidel Chavez Mena, the Salva- 
dorean Foreign Minister. 

No observers have yet been - $£•• t 
named, though delegations 
are expected from Colombia 
and Venezuela;. Mexico and 
Nicaragua, whose relations 
with the Duarte Administra- 
tion are strained, have not 
been invited. 


-tf- 





fc * la* a 


‘rimes 



12 1982 


OVERSEAS NEWS 



%f .Quefltiiv* **i, Africa Editor 



i,j uT “**%, r.y \ 

M?!t ■ "v. 

r *c> 


FS^t-Lietitenant Jerry 
' .. has .been fuefied by 
. .. d . announcement of 

-. xeaamUitott of diplomatic 

* ^c> *** rBWS^-^iieiweca. ■ the two 

V: 2^r^ : T3»e' <ajia‘ News Agency 
Jl? ? *• ras mave yesterday, 

*foU»wuiS.a weekend visit byan 

, .£*■ ” ^ ofSaal Libya n , delegation-— the 
^.JBrsrto arrive once the airport 
' *' i.- *“ OiatAcxa was, reopened. ' 

/“■'■‘ss tf from Ghana have 

,t ~‘\ the coup that 

. _ ibersi,was direct support from 
t ■ ? : B* ; 1 So^iment . _ of Coload 

" -i.r« "MastiBiGr' Gadaffi, but so far 

* - *;U.M hat- - 1-^. . 




<r 


•-'52s* 


'there 


has ."been'- little hard 
tt> support them. 



*r- 


£ =**»' 

~ .->*** . friend nnn ..j 


ati'i" ^a-beHeyer in the third universal 
- - v thB . peopl<i ' s 
^ ^ Gadaffl added that Ffet-Lt 

\i*7 u - is ^.;Ka»Hhgs was a member of the 
f- f ■ r revolutionary ooro- 

- ■ iv* s'MHttees." He said that ^tbouah 
s' .-r -■: >^x»ya had been ^ a^E 
iivr- »- ^ ***? *>y one-%» su^rtere, 

4. ■ * ^-^he. beiieved^this was unlikely 

°I*ana becauise Rawlings ’ was 
1_ ; *' •• • J. -^frxu the revolntaonaxy forces " 
• ^- r. "■" Jpr HaHa Iimann,tbe deposed 
« iv „ Ghanian President, Iwd been, a 

> i~ ’ 'jparfejJarly vociferous opponent 
; j ” the Libyan leader, insisting 

: ± • Ghana would not attend 

j--.-*.. year’s .summit of the 

rs • -. /' ^Organisation of African Unity 
^ in Tripoli; Ho .broke off dajdb- 

„ „*■*' c;-r«. r aiatac relations in November 
'•‘i.:.: ; .^.’1980, claiming that Libya was 

' ••* cr 3 . Z interfering? i a .Ghana’s ftnterma 

i -' '■ • affairs. ••■ 

r-^ir " • Given Libya's obvious syrn- 

'■“*■■ y - -- .- pathy for the coup leaders, 
T - • ■ * ; -z_ ~' there is some concern 'among 
western diplomats that Nigeria 
: .-. - . ... - may cut off oil supplies, as st 

; did on the occasion of RaraEngs’ 

u '" = *: previous coup in. June, 197d. iu 

5 - _ rt - Jhat case, the diplomats fear, 
'J. ' ^ Libya would simply step hi with 

“ .. ? ' oil supplies, cemeating-tibe Mitt 

; .■*■ ■ tiMiship. .*■ 


Haig to seek progress on autonomy Pcace pian 

retreat 
by Saudis 


RY OUR POftOGN STAflF 

THE U.S. Secretary of .State, 
Mr Alexander Haig, is-expected- 
}? Pr^s for. faster progress on 
Palestinian, autonomy negotia- 
tions when -he arrives -in .the 
Middle East today, 

-Be wUl first hold tatts with 
Egypt’s President . Hosni 
Jiiibarafe .before going on to 
IsraeL The Egyptian Govern- 
ment, while. " welcoming Mr 
Haig’s desire' to inject fresh- 
life into- the almost moribund 
taiios on the iftaure <ff the occu- 
pied West Bank and Ga wa Strap, 
^ anxious that no thing should, 
detey Israel’s withdrawal from 

the remainder of flfait- -nest 

April 

Officials in Cairo fear that any 
U.S. attempt to. impose a' dead- 
line for the autonomy negotia- 
tions, or to exert increased pres- 
sure on Israel, could prove 


counter-productive and might 
even result in Israel refusing 
to pull out of Sinai. 

• Instead the Egyptians would 
prefer the period up to the 
Israeli withdrawal on April 26 
to - be used to. produce some 
benefits for the Palestinians 
living in the West' Bank pnA 


Egyptian officials believe that 
through tangible, if small, gains 
in daily living conditions, the 
Palestinians might be persuaded 
that the autonomy negotiations 
were serving a useful purpose. 
Eventually this could lead io 
the Palestinians being drawn 
into the negotiating process. 

The autonomy talks started 
in May 1879 and should have 
been completed a year later. 
But tfie Egyptians and Israeli 
positions have remained far 
apart 


Egypt under both President 
Sadat and now Mr Mubarak has 
been keen that this process 
should be a first step towards 
what would eventually become 
a Palestinian state. 

Israel, however, wants to be 
certain that from both adminis- 
trative and security aspects the 
West Bank and Gaza Strip ulti- 
mately stays under its domina- 
tion, 

The Cairo newspaper Al- 
Gmnhouriya in an editorial yes- 
terday inferred criticism of the 
U.S.' “ We expect Mr Haigta to 
stress to the Israeli side what 
the U.S. Administration had 
previously declared concerning 
its keenness on the continuation 
of the peace process without 
placing obstacles in its way.” 

Mr Haig travels to Jerusalem 
on Thursday where he is 


expected to take the first steps 
towards patching up the UR. 
quarrel with Israel over its 
annexation of Syria’s Golan 
Heights. 

The UR. Administration con- 
demned the Israeli move and 
retaliated by suspending the 
newly signed agreement on 
strategic co-operation. U.S, 
officials do not expect the agree- 
ment to be revived during Mr 
Haig's visit 

Mr Me nah cm Begin. Israel’s 
Prime Minister, is likely to 
press Mr Haig to reaffirm the 
U.S. commitment to the Camp 
David peace agreement and to 
make clear Washington's 
refusal to become involved with 
other schemes such as those put 
forward by Crown Prince Fahd 
of Saudi Arabia and by the 
members of the European 
Economic Community. 


Sinai settlers reject compensation offer 


w mw unnon m TEL AVIV 


ISRAELI SETTLERS who wiH 
have to evacuate the Sinai when 
it- is returned to Egypt in April 
have angrily rejected the latest 
Government: ofitar of compensa- 
tion totaffing £137oi. 

- The residents of the town of 
Yamit said. . the • sums being 
offered were too smaM and were 
being unfairly- divided between 
urban and agricultural settle- 
ments. The urban settlers are 
due to receive between £70,000 
and £120,006 per family depend- 
ing on the aze of their homes 


and businesses. They want 
more. 

But the Cabinet decision last 
week to increase the compensa- 
tion by about 20 per cent 
caused uproar -In Israel. The 
Finance Minister - even 
threatened to resign over the 
Cabinet’s largesse at a time 
when he was cutting budgets. 

Parliament's Finance Commit- 
tee yesterday began discussing 
the offer. Mr Shlomo Lorencz, 
tbe chairman, said all the 
members regarded the new 


offer as too high. Tbe commit- 
tee has the. power to biock the 
payment by withholding 
approval of the Treasury 
request for additional finance. 

Representatives of the Yamit 
settlers threatened yesterday 
not to leave the town. They 
said that they would resist 
attempts to evacuate them until 
they had been offered fair 
compensation. 

Mr Simcha Erlich, Deputy 
Prime Minister, who negotiated 
the latest offer on behalf of the 


Government, said It was on a 
“take It or leave it” basis 
“They will not get a penny 
more" 

Even if tbe -row is resolved 
the Government still faces 
trouble from hundreds of 
squatters from the Movement 
to Stop the Withdrawal who 
have moved into the Sinai 
settlements in recent months. 
They are determined to resist 
with violence the evacuation of 
the settlements as they opposed 
the return of Sinai to Egypt. 


By Our Foreign Staff 

SAUDI ARABIA has further 
retreated from the implied 
willingness to recognise 
Israel contained in the 
seventh point of Crown 
Prince Fahd’s “peace plan.” 

A statement issued by a 
spokesman at the royal 
palace in Riyadh said that 
tbe question of recognising . 
Israel and entering into peace 
negotiations with It could 
only be settled as. a result of 
a collective decision. 

Saudi Arabia “does not 
aeeept any reference suggest- 
ing that Palestinians have to 
negotiate with or recognise 
Israel because no Individual 
or group can speak for the 
Palestinians and because 
these issues of destiny must 
be decided by the Arab 
nation,” H added. 

The seventh point of Crown 
Prince Fahd’s plan asserted 
that “aU states in the region 
should be able to live in 
peace.” 

Questioned about ft last 
week in an interview with the 
New York Times, Prince Sand 
al-Faisal, Saudi 1 Foreign 
Minister, said that If Israel 
returned occupied Arab lands 
and recognised Palestinian 
rights, the kingdom would be 
prepared to “accept it.” 

On tbe following day an 
official statement by the Saudi 
Foreign Ministry denied that 
the kingdom was prepared to 
recognise Israel- 


Censorship eased as 
Pakistan’s advisory 
council is launched 

BY ALA W CASS, ASM EDITOR IN ISLAMABAD 


PAKISTAN'S newly-constituted 
Federal Advisory. Council . was 
inaugurated yesterday ' by 
President Zia ul-Haq who said 
it would lead to civilian rule 
and “Islamic democracy” in 
time. 

In a surprise move President 
Zia also announced the phased 
lifting of Press censorship. As 
a first step, he said, addressing 
the 287-member body, pre- 
censorship of daily newspapers 
would be lifted Immediately. 

The President said the news- 
papers would be required to 
exercise self-censorship. They 
would not be allowed to publish 
anything prejudicial to Islam, 
the security of Pakistan, 
regional unity and the dignity 
of the armed forces and the 
judiciary. 

Despite ife wry limited 
powers — the council has no 
legislature authority and can- 
not vote in reaching decisions 
— this is the first time since the 
imposition of martial law in 
1977 that civilians have been 
allowed a voice in the run n ing 
or the country. 

Pakistan’s major opposition 
.parties, still banned under 
martial law, have condemned 
the council as an attempt “to 
hoodwink the nation and the 
outside world.” The Movement 
for Restoration of Democracy, 
a coalition of eight anti-Zia 


parties, called the council an 
“ act of subversion ” and issued 
a veiled warning to Its 
appointed members. 

Amid heavy security Presi- 
dent Zia told the council that 
it could debate Pakistan's ban 
on political activity and remain- 
ing Press censorship and make 

recommendations. 

“The council should also tell 
us what kind of democracy we 
should have” President Zia 
said. ‘T am not against demo- 
cracy. I am not against elec- 
tion. But democracy was ex- 
ploited and ruined in the past 
34 years.” 

The heavy emphasis on Islam 
reflects the military regime’s 
concern to placate the ground- 
swell of Islamic fund amen* 
talism. President Zia asked the 
council to recommend how best 
to achieve Islamic policies such 
as the total abolition of interest 
rates, she cutting off of thieves’ 
bands and the complete devo- 
tion of radio and television to 
Islamic teaching. 

The establishment of the 
council is likely to please 
Pakistan’s U.S. allies whose 
$3.2bn arras and economic aid 
package, including the imme- 
diate delivery of F-16 aircraft, 
has raised fears that 
Washington may be backing a 
military regime with little 
popular support. 


Minister survives 

Malaysia crash 

MALAYSIA’S Foreign Minister, 
Tan Sri Ghazafi Shafie, whose 
death in 'an air cfash was feared 
on Sunday, was reported yester- 
day to have survived* Wong 
Striong writes -from Kuala 
Lumpur.:. • 

The Minister was found' by 
police in a village four miles 
from Ibe wreckage -of the light 
aircraft' in which he had been 
traveling. His security officer 
and _a flying instructor were 
killed- .. 

The Minister said yesterday 
that he .had been thrown out 
of the machine as it hit some 
trees. 


ir ! 


v,_ ^ 


;' v ' - SENEGAL’S ECONOMIC PROBLEMS 

» t.'- - 

-I *T' r ~ZirJ. jr? 2 

JWW 


Grides surprised by 
fonne? backroom boy 

BY MARK WEBSTER, RECENTLY W DAKAR 


IT IS hard to mistake President 
Abdou Diouf, Senegal’s head of 
state, for his lanky $ ft ft in 
frame puts him among the 
world's tallest leaders. But 
until last year, when be 
assumed power from the poet- 
philosopber Leopold Senghor, 
who had ruled . Senegal since 
independence 21 years ego, 
many people believed bis height 
was the only remarkable thing 
about him. 

During a blameless 10 years 
as Mr Senghor’s Prime Minis- 
ter, Mr Diouf was considered a 
hard-working and colourless 
backroom boy, who did not 
have the stature, meta- 
phorically speaking, to lake 
over as head of state. . How- 
ever, bis performance as presi- 
dent has caused many of his. 
critics to change their minds. ' 

He has been blessed with 
Senegal's first good harvest in 
three years, but hay also 
revealed himself as an astute 
politciao, a decisive foreign 




jolicy maker and - a competent 
fconomist — although Senegal's 
economic .problems are so acute 
hat progress has not beeh spec- 
aculari 

Senegal’s serious economic 
jroblems stem from a succes- 
ion of failed harvests,^ its 
iverdependence on a single 
- ro p — groundnuts — and its 
mwiddly- bureaucracy, Mr 
Jiouf also faces, a vocal, 
ipposition in one of Africa s 
test educated political elites. . 

Yet, since taking office, he has 
-orxected some of the. mistakes 
rf the highly opinionated Mr 
iengbor's later years. - On the 
lomestic front, he has surprised 
is political opponents by throw- 
ing open file political fiel d to . 
llcamens.- Mr Senghor jbad 
eluctautly introduced an arafr 
ial fioniHMffty system, in 1978- 
Jut Mr Diouf has allowed li 
tarries to register, including the 
national Democratic Assembly 
R2STD) led by Cheikh Anta 
)iop; who is potentially the 
aost forceful opposition leader. 
Mr Dioufs gadiWe is that by 
he I9SS elections be will haw 
ecured his position as head m 
he Socialist Party (PS), which- 
•as 84 seats in. the 100-seat 
National Assembly. 

The new president has used 
he fact that he is a devout 
Ioslem to cultivate links with 


the country’s powerful Moslem 
leaders, the Marabouts. Under 
has Christian predecessor, their 
relations with the Government 
were always a little strained, 
- ' ffitt image as a conservative 
Moslem leader has also helped 
him to gain aid particularly 
to build the giant Diama dam, 
from Arab, states such as Saudi 
Arabia and Kuwait. He has 
won their support because of 
Ins openly hostile attitude 
towards Libya and his sympathy 
for, the Pobiario guerrilla move- 
ment in the Western Sahara 
• -At the. same thne^ Mr Diouf 
showed how quickly he is pre- 
pared to act when Senegalese 
troops intervened in neighbour- 
ing Gambia after an attempted 
coup last Ju^. 

Senegal has exacted a high 
price for its help. Sir Dawda 
has agreed to form a confedera- 
tion which is expected to lead 
to a federal system which the 
much larger Senegal will inevit- 
ably dominate. It would be a 
major, foreign policy victory for 
Mr Diouf,. since Senegal has 
long wished to get control of 
tiny Gambia. However, it will 
add to Senegal's already con- 
siderable economic headaches. 

During tire past two decades, 
Senegal’s redd growth rote has 
averaged only 2.7 per cent 
annually, barely keeping pace 
witiz the increase in <Sie popula- 
tion. Two successive crop 
failures .meant 4haX real gross 
domestic product (GDP) 
declined nearly -17 per cent 
between 1979 and 1981. Even 
though this year’s crop should 
reach between 850,000 ■ and 
900,000 tonnes, real GDP is 
unlikely to recover its 1879 
level until 1983 at 4he earliest. 

There are atroctural prob- 
lems " affecting the economy, 
which Mr Diouf has to- tackle 
if Senegal is ever to pull itself 
out of its present rut The 
economy Is too dependen t on 
earnings from grcnmdmits and 
it suffers from an over-heavy 
and costly administration which 
has become used to relying on 
heavy foreign borrowing to 
make up its payments gap. The 
heavy foreign debt, burden 
pushed debt servicing to 29 per 
cent of export earnings last 
year. . „ 

The International Monetary 
FUnd abandoned discussions 
about a three-year -, -extended 
fond facility for Senegal after 
tbe Government faded, "to 
adhere to restrictions on 
central government spending 
and did not fulfil its commit- 
ment to reduce the .subsidy on 
the 400,000 - tonnes of rice 
which it imports annually. 

Instead, lie fund is negotiat- 
ing help for .Senegal, on an 
annual basis. Last year, it 
agreed to aBow it 100 per cent 
of Us quota of SDR 63m- 
(£l03m) and Dakar is 
optimistic that aid on the same 
scale will be available this year. 
.Other aid donors, including 
France, have also stepped np 
their economic assistance. 



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Financial-Times Tuesday January 32 1982 


WORLD TRADE NEWS 


BLMini 

makes 

comeback 


BY CHARLES SMITH, FAR EAST EDITOR IN TOKYO 


By John Griffiths 


THE BL Mini is being reintro- 
duced to Japan after .a gap of 
about eight years. 

Sales of a forecast 600-700 
one-litre models are due to 
start in the spring through 
Nichiei Jishoda, an importing 
.company. It has retailed several 
models from the marques which 
have comprised the BL group 
for nearly 30 years. 

It has been selling the 
Triumph and TR7 and MG 
models, now out of production, 
and handled Mini sales until 
legislative requirements stopped 
their import to Japan in the 
early 1970s. 

BL said yesterday that the 
one litre “A” series engine of 
the Mini has been re-engineered 
to meet Japanese legislative 
requirements. The engine is 
essentially of the same speci- 
fication as the smaller version 
of the Metro, which has yet to 
go on sale in Japan. 

If sales live up to the fore- 
cast, BL's total sales to Japan 
would rise by 50 per cent. It 
sold 1,500 there last year, 
mostly Jaguars and Rovers. 
These are retailed separately 
through Leyland Japan. 


JAPAN will use the trade 
talks with the U.S. and the 
EEC, taking place later this 
week at Key Biscayne. 
Florida, to air its concern 
about the concept of “ retalia- 
torv reciprocity" which, it 
claims, is emerging in the 
VJS. . 

By reciprocity, Japan under- 
stands a threat to dose U-S- 
import markets to countries 
which are thought by Ameri- 
can businessmen to maintain . 
obstacles to the sale of U.5. 
products. 


Adoption of the concept, as 
a guideline by U.S. trade 
policy-makers would be cer- 
tain to reduce trade flows 
and is • therefore highly 
dangerous, according to 
Japanese officials. 

But, whether the concept 
has been taken up by the 
Reagan Administration, or is 
simply being aired in Con- 
gress is a point on which 
offidals seem uncertain. 

Japanese officials expect 
the Key Biscayne conference 
to concern itself with general 


principles rather than specific 
trade issues (although they 
concede these may be aired 
outside the conference ses- 
sion). 

The Japanese delegation 
plans to * reaffirm its com- 
mitment to free trade" at the 
meeting. But it is realised 
that other delegations, in- 
duffing that from the EEC, 
may be less interested In talk- 
ing about free trade and more 
concerned with current prob- 
lems. 

The Japanese delegation. 


headed bv Mr Shintaro Abe. 
the Minister of International 
Trade and Industry, will tell 
other participants at the con- 
ference of recent measures 
taken by the Government to 
stimulate imports. If pressed 
it may be prepared to discuss 
export moderation. 

Under the general heading 
of “revitalising free trade," 
Japan hopes to talk about 
industrial and technological 
cooperation between itself 
and Western industrial 
nations. 


The Ministry of Inter- 
national Trade and Industry 
which has favoured the hold- 
ing of a three-cornered con- 
ference with Europe and the 
L'B. since the idea was first 
mooted in Washington last 
summer is in favour of 
holding a trilateral confer- 
ence at regular Intervals. 

The Foreign Ministry takes 
a much cooler attitude and 
believes that there are 
sufficient forums for discus- 
sing trade issues. 


U.S. interested in radar-absorbing paint from Tokyo 


BY RICHARD C. HANSON IN TOKYO 


THE U.S. is interested in a 
special radar-absorbing paint 
developed by TDK Electronics 
for Japan's Defence Agency 
apparently for possible use on 
jet fighters. 

This appears to be one of the 
first firjn indications of the kind 
of defence technology the U.S. 
may want from Japan. 

Discussions on possible 
defence technology exchanges 
began last year. 

TDK, the world’s leading pro- 


ducer of ferrite, a combination 
of iron oxide and zinc, was 
recently asked' by. the U.S. 
Embassy in Tokyo for a sample 
of a paint it developed under 
contract from the Defence 
Agency in 1977. 

The agency, according to 
TDK, holds the patent for the 
paint, which can be used among 
other things to absorb radar 
waves. 

It would be useful in develop- 
ing a military bomber, the so- 


called stealth bomber being dis- 
cussed in the U.S., which could 
avoid detection by ordinary 
radar. 

Ferrite is already used in such 
commercial products as micro- 
wave ovens. Ferrite paint is 
still jn the research and develop, 
ment stage. 

The Defence Agency declined 
to comment on w'hy it commis- 
sioned TDK to develop the 
paint, or on how -it intends to 
use iL ' 


So far, discussions between 
U.S. and Japanese officials on 
Japan making available defence- 
related technology have been 
rather vague. 

The Japanese Government 
has not yet decided officially 
whether such an exchange of 
technology is possible under its 
strict policy of not exporting 
defence items. 

The matter was again discus- 
sed last week in bilateral 
security discuss o ns held in 


Tokyo. The U.S. is interested hi 
Japanese advances in high tech- 
nology areas, such as electro- 
nics, which are applicable to 
weapons and defence' systems. 

The U.S. has long .been the 
major supplier of defence tech- 
nology to Japan. There are some 
officials in Japan who believe 
that opening a two-way 
exchange -in technology will 
help to improve Japan’s .secu- 
rity ties with the U.S. 


India’s trade with Moscow i Israeli jet venture discussed 


expected to rise by 11% 


BY DAVID UB4NQN IN TEL AVIV 


Iraq orders 
fire trucks 


BY K. K. SHARMA IN NEW DELHI 


INDIA'S two-way trade with the 
Soviet Union this year is expec- 
ted to rise by 11 per cent to 
Rs 32.6bn (£2bn) making the 
Soviet Union its largest single 
trading partner. 

A trade protocol signed 
recently between the two en- 
visaged such a rise, mainly 
through a substantial rise in 
Indian exports. These are 
expected to increase by 22 per 
cent to Rs 17.7bn. 

The protocol does not take 
into account the long-term tex- 


tile export arrangement being 
di cussed by the two countries, 
which envisages the purchase 
by the Soviet Union of Rs 4.5bn 
worth of garments and doth. 

India values its trade links 
witih the Soviet Union because 
payment for imports is made 
in rupees -or in goods. 

A Rs 16m defence deail with 
the Soviet Union was signed in 
19S0, and since then more 
sophisticated weaponry like 
MiG-23 and MiG-25 aircraft, 
have been bought. 


MR ARIEL SHARON. Israel’s 
Defence Minister. . yesterday 
held discussions with represen- 
tatives of Northrop, the U.S. 
aviation concern, over possible 
joint U.S.-Israel production of 
of the F-18 jet as an alternative 
to the Israeli plan to design and 
build its own Lavie fighter- 
bomber. 

Mr Ezer Weizman, the pre- 
vious Defence Minister, gave 
the go-ahead for the Lavie 
project almost two years ago. 
It was then estimated that it 
would require a $lbn (£526m) 
investment to produce the 
Lavie* to replace the Israel Air 


Force's ageing Sky hawks and 
Kfirs. 

However. Mr Sharon is seek- 
ing ways of paring the defence 
budget In November, he 
ordered a slowing of the 
project while he reviewed the 
advisability of Israel trying to 
produce its own fighter- 
bomber. 

. He deferred the signing of a 
contract with Pratt and Whit- 
ney, the U.S. manufacturer, for 
Israel to manufacture its 
PW-1120 engine for the Lavie. 

It also became clear that the 
Minister wanted, to spread the 
development over a longer 


'period so that: the aircraft 
would become operational in 
ttie early 1990s rather than in 
the late 1980s as originally 
scheduled. 

The possibility of Israel co- 
producing the F-18 has been 
discussed, but the idea was 
dropped after the decision was 
taken to go ahead with the 
Lavie. It has re-emerged in the 
light of the need for cuts in the 
defence budget. 

Defence Ministry studies have 
apparently shown that it will 
be very difficult to produce the | 
Lavie solely from the defence ' 
budget 1 


worth £11.9m 


TOKYO— Iraq has ordered 218 
large fire-fighting trucks, 
including 155 foam vehicles, 
worth Yobn (£U.9m) from 
Japan. 

Tbe Sumitomo Company said 
that Hino Motors would build 
the trucks for the directorate 
. of civil defence. The fire- 
fighting equipment will be 
produced by Marita Pump, qf 
Osaka. 

Sumitomo received a similar 
order for 208 fire-fighting 
trucks worth Y3.5bn from 
•rsq in August — AP 



Erratic rand tests the skills of| 
South Africa’s foreign traders 


BY BERNARD SIMON IN JOHANNESBURG 


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Geneve 22 -31.1.1982 


THE SKILLS of South Africa’s 
foreign traders are being tested 
by unprecedented gyrations in 
the country's currency, tbe 
rand. 

The rand plunged from a peak 
of $1.35 in January 1981 to an 
all-time low of less than half a 
cent above parity with the 
dollar in mid-December, a drop 
of more than 25 per cent In the 
past three weeks, it has climbed 
back by almost 5 per cent 
• These movements follow an 11 
per cent appreciation against 
the dollar during 19S0. Similar 
fluctuations have taken place 
against other major currencies 
with the notable exception of 
sterling. 

The rand's fall last year was 
largely a result of the streng- 
thening dollar, the weaker gold 
price and a market deteriora- 
tion in South Africa’s balance 
of payments. 

The biggest beneficiaries 
have been the • gold mines 
which accounted for roughly 47 
per cent of total export earn- 
ings in 1981. While the dollar 
price of gold -slipped from an 
average of $558 an ounce last 
January to little more than 
$400 in December, the price 
expressed in rand hovered at 
around R400 an ounce for most 
of the' year, well above most 
mines' breakeven point. 

For other exporters, the 
rand's decline has come at a 
bad time. Although it has 
boosted their rap® earnings, the 
weaker rand has not generally 
improved the competitiveness 
4f South African products. 

Demand for most mineral ex- 
ports is in the doldrums ait 
present, and even lower prices 
are not sufficient to persuade 
customers iito increase their 
orders. “Our exports are not 
price .elastic,", says Mr Michael 
Brown, chief economist of the 
Chamber of Mines in Johannes- 
burg. 

The downturn in foreign 
demand coincided with. a boom 
In tbe home market. As a result 
many suppliers,, particularly of 
manufactured goods, switched 
from exports to meeting local 
demand. 

According to Mr Wlm Hokes, 
chief executive of the South 




Dr Gerhard de Kock: Reserve 
Bank determined to maintain 
rand's valne 


African Foreign Trade Organi- 
sation, “ If the fall in the 
.rand had taken place when 
world demand was high and 
the South African market weak, 
our exports would have taken 
off like a rocket It’s the best 
incentive the Government could 
have given." 

South, Africa's non-gold ex- 
ports performed poorly last 
year. Revenues were 6.2 per 
cent lower in the first 10 months 
of 1981 than in the same period 
the previous year. A Z7 per 
cent drop in the value of 
diamond exports was the main 
reason, hut sales of intermediate 
goods, such as pulp, paper, 
leather and wood, fell by 17.2 
per cent. 

The effects of the rand’s 
depreciation have been most 
marked on imports. As norm- 
ally happens when a currency’s 
value declines ■ sharply, the 
initial effect has been a surge 
is prices of imported goods, 
help ed along by continuing 
strong demand for foreign 
goods, especially machinery and 
transport equipment. The 
value of transport equipment 
imports was no less than 59.4 
per cent higher in the first 10 


months of last year than in 
January-October, 1980, and im- 
ports of all goods are estimated 
to have risen by around 30 per 
cent in 1981. 

Higher import costs had a 
significant impact on domestic 
pirces. The decline of the rand 
“ will ultimately affect domestic 
appliance, prices by close to 30 
per cent." according to Mr 
Vernon Katz, chief executive of 
a large appliance importing 
company, prices of motor cars, 
half of whose value consists of 
imported componnts, are ex- 
pected to go up by around 10 
per cent soon. A fuel price 
increase was averted in the 
closing -months of 1981 only by 
subsidising the oil companies 
from motorists' taxes. 

Imported inflation is one 
reason why South Africa’s con- 
sumer prixe index is expected 
to move up by 13-14 per cent 
this year, only slightly below 
tbe 1981 inflation rate, despite 
much lower growth in most sec- 
tors of tbe economy. 

However, there are now clear 
signs that the weaker rand 
(helped by predictions of 
weakening consumer and invest- 
ment demand) is beginning 'to 
have the desired effect of dis- 
couraging imports. 

Most economists predict a 
significant fal in import demand 
in 1982. . . 

The Reserve Bank, -which 
manages the rand' sexehange 
rate, has apparently decided to 
call a halt to the slide. 

Dr Gerhard de Kock, the 
bank’s governor, said recently 
that the authorities were deter- 
mined to maintain the rand's 
external and internal value. On 
the day last month after the 
bank raised its discount rate by 
I per cent to 13.5 per cent, the 
rand moved up by almost 150 
points againust the dollar. 

. The rand is expected' to con- 
tinue appreciating in , 1982 as 
the balance of payments im- 
proves. Most foreign exchange 
analysts predict it will move to 
between $1.10 and $1.20 by the 
end of the year. But. like every- 
thing else in the South African 
economy, .all depends on the 
gold price. 




BASELENDIN6RATES 


Japan to voice fears over imports retaliation 


AJ3.N. Bank 

Allied Irish Bank ...... 144% 

American Express Ek. 144% 

Amro Bank 

Hems’ Ansbacher 14*% 

Arbuthnot Latham ... I4i% 
Associates Cap. Corp. 15 %i 

Banco de Bilbao 14f% 

BCCI WiJ 

Bank Hapoalim BM ... 

Bank Leumi (UK) PJc 14J% 

Bank of Cyprus 14*% 

Bank Street Sec. Ltd.... 16 % 

Bank of N.S.W. 14j% 

Banque Beige Ltd. - I'm to 

■ Banqne du Rhone et de 
la Tami se SA. ...... 15 % 

Barclays Bank 14i% 

Beneficial Trust Ltd.... 15J& 
Bremar Holdings Ltd. 15$% 
Bristol & West Invest 16 % 
Brit Bank of Mid. East m% 

i Brown Shipley 15 % . 

Canada Permt Trust.. 15 % 
Cavendish G’ty Tst Ltd. 15* % 

Cayzer Ltd 15 % 

Cedar Holdings . 15 % 

l Charterhouse Japhet... 15 % 
Choulartons ■— 15 % 

Citibank Savings J15 % 

Clydesdale Bank ...... 143%. 

C. E. Coates 15 % 

Consolidated Credits ... 14J% 

Co-operative Bank .....-.*14*% 

Corinthian Secs. 14*% 

The Cyprus Popular Bk. 141% 

Duncan Lawrie 14*% 

Eagti Trust J4|% 

E.T. Trust 144% 

First Nat Fin. Corp-— 1J % 
First Nat Secs. Ltd. .... 17 % 
Robert Fraser 15 % 


Grindlays Bank ......... $14^ 

Guinness Mahon 14j^ 
Hambros Bank* ..*. 


I Hambros Bank * ..*. : Hit 

Heritable & Gen. Trust Hj«t 

I Hill Samuel ...§144% 

C. Hoare & Co tl4j% 

Hongkong & Shanghai 14 
Knowsley & Co. Ltd.... J5 % 
Lloyds Bank ' 14*% 


Maflinhali Limited ... 141% 

H i J 


Edward Manson & Co. 15*% 

Midland Bank 14*% 

I Samuel Montagu 

i Morgan Grenfell . -I4i% 

National Westminster 
Norwich General Trust 
p s. Refson & Ca ...14$% 
Roxburgh c Guarantee . IS % 

E. S. Schwab . 14|%' 

Slavenburg’s Bank ... 14*% 
Standard Chartered ...’144% 

Trade Dev. Bank 14*%. 

Trustee Savings Bank 14$% 

TCB Ltd. 144% 

United Bank of Kuwait 144% 
Whileaway Laiffiaw ... 15 % 
Williams & Glyu’s ... 144% 
■Wintrnst Secs. Ltd.- ... 144% 
Yorkshire Bank — -144% 


| Members of the Accepting House* 
Committee. 

7-day deposits .12.SJ". l-ntosth 
12 . 75 %. Short linn £8.000/12 
months IS.IOVe. 

7-day deposit* on sum* of tin isl- 
and under 12 up to 150000 
13% flud.owr £50.000 13V». -' 

Call deposits 0,000 and war 
12>«%.. . 

Demand deposits 12V*. . . . 

21-day deposit* over £1.000 
Mortgage base rate. 


MAPC0 UPDATE: 


GIBSON COUNTS Ind. — MAPOO 
Inc. wiUbiMIncliana'slga^stundeigroorulcoal 

mine here 58,000,000 tons of.recoveraHe 

reserves under 11,000 sexes. Beginning in. 1985, 
die coal will be shipped by rati sooth, to Me. 
Vernon, on the banks of the Ohio River where 
MAPCQ is building anew coal terminal and 
marin e facility. MAPOO . . . growing hi coal 
production. . .with sales -of over nine million 
projected far 19821 




47,4 


^IMAPCOmo 


. 1900 S. BALTIMORE AVE. 

TUISA.OKLAHOMA.74U9 

(918)584-4471 

S7MBOLMDA-i«SEMWSEffiS& 


To the Holders of 

NIPPON YUSEN KABUSHTKI 
KAISTTA 


7%% Convertible Bonds Due 1996 


Pursuant to Clause 7(B) of the Trask Deed dated as of ISth. 
February 1981 and Condition 5(C) (xii) of the above-meutfaned 
Bonds, notice is hereby given as follows: 

1* A free distribution, of Shares of our Company rriH ha mad&to 
shareholders of record as of January 31. 1982 in Japan at ike 
rate of 0.05 Share for each Share hda. ^ 

2. As a result of such distribution, the CtarvwtfojtSriceafcwMdt 
lha above-mentioned Bonds may be converted into Shares of 
our Company will he adjusted effective as of February 1,1982 
Japan Tune, from Ten 805 per Share to Ten 2S0J5per Share 
prosnaart to Condition 5(0 of the Bonds. 

NIPPON YUSEN K ABUSHXBJ ITAiyrBTA- 

Dated: January 12, 1982 


CLASSIFIED ADVERTISEMENT RATES 

EFFECTIVE JANUARY, 1982 


and Didustrial Property ' 8.00 in 

Residential Properly “ f jyf IL 

Appointment* — - S50 

Business, Investment Opportunities ssn 

Businesses for Sale/Wanted - ’ - 85n ' ' ?o 

Personal - ... SS; 

Motor Cara - •_ ■ «oo - S 

Hotels and Travel . 600 

Contracts and Tenders 2‘S g 

Book Publishers W ^ IL 

• * • - Premium position available 

(Minimum size 30 .column cans) - 
£6.00 per single cohzmn cm extra. 

F or further details write to: 

Classified Advertisement Manager 
^^Finaneial Times, 10, Cannon Street, EC4P 4BY 


Single 

.column 

cm 

£ 

27.50 
- ; 20M 
28.00 

29.00 
' 29.00 

20.00 
20.00 
20.00 
27.50 

net 12.00 


■s' 1 







DELIA'S MEDAUKHI SERVICE 
CLASS TO ATI ANTA. UXUltirJir 




Medallion Savice Class is Delta's special business class 
for nmchless than First Class Fare. It’s ideal for business travel- 
lers from London. AH 2-by-2 seating for extra comfort. Your 
own separate sea ting area, too. A quiet atmosphere in which you 

can woii or just rel^Yourheverage list includes cocktails, fine 
win e s and liqueurs. You get an increased baggage allowance, 
too. All at no extra charge. Delta also has Medallion Service 
Class from Erankfiirt to Atlanta (no separate ra fri n erea). 

Delta flies nonstop to Atlanta from London every day 
eiKSpfcMoiidayandWednesday.femiFrankfortevBrydayex- 
ceptToesd^aBd,Thin^d^A^£ixmiAfclanta,Dellaflie3ontq 


80 cifaesin thecontinentalUSLA.ThteDfiilta^ to Atlanta and//^~ 
■without c hanging airlines von canbe on vonr wav tn Hripg 
coasttocoast. ■..,{■ \ ( 

For information and reservations, call your Ttavd ' 

Agent. Or call Delta in London cm (01) 668-0935 or (01) 

668-9135, THez 87480. Or call Delta in Frhnkfurt on 
0611 23 30 24, Tfelex 0416233. DeltaTicket Offices are at 
140 Regent Street, London, W1R 6ATandFriedensstrasge7 
6000 Frankfnrt/Main. Schedules subject to change without notice. 


A'DELTA 

-svstsvtncura«'up 


DEDA.THE AIRLINE RUN BYPROFESSKMCAIS. 



Si 









-c -;V-^ -'.-t- 

• .-ri Sf* ■i.S'V-sl-. 


WRA* 

next, eighth round of defences 
2ft U^^ased :• aitiwu#i they hav& not ruled 

ynu end feettT ■ Sea eat :the pbssibffity jjf iofoing 

fs&amuw. again in future rounds. 


and Amoco 
1 Sea pact 


because- of- = pwawsd’ : Geveftt* 
meat -dhangee3'^oc ' tttft ’gafi 
-industry, ■'■'■>. "■:--->" 


If . was being emphasised in 
&fe industry last night that the 
cpffljmnieB wod&l continue to 


Amoco,' : w*cia^-T*jat/ 'dw . : ‘weEs on jointly held 

Gowernmert -wS 'C^rict the "fieenaes granted in the first 
Gas Coripo f atfep^ ; aeaqa tara ? seven rounds, 'although neither 

;-tkm arttoities^bsis decided to corporatikm was prepared to 
seek. new partners Aw ‘-foe next , ct ^ Br 9^ r ^ 

TOUPd -yif'--jinBnriRR 1 ~(h\p .jo fas - British Gas GoTpftrulloa te at 
arinotmee d ^ ifcaB ** tiim» er. - . . , : the centre of sweeping changes 
fiA rtt a.- r^-'S^r in . state-owned off end gas 

interests proposed "by the 
^5ii .Government. Un3» the (Mi. and 

North smoe^ first roiHid Gias (Enterprise)' RH1, due to 

5 rweSTC tts second reading next 

Tuesday, the corporation is due 

53SB"® ■ a isamAarE 

. * nd - I?™*- ■ British Gas te a member of 
West HuttMt '.... a oonsortfimn, led by Amoco. 

It.is understood British. Gas which' is ttriBing: a well on 
and Amoco have each derided block' 30 / 12 t>, dose to the 
fa seek new . partners for. the Jbse$foiue and Fsflmaf fields in 



ersoi commerce 

&f&.\ ■ *...•: y :-..»v v>* .■ *V". 
y ~j _-' T -. ' : - 


y -- . .?. j r ' ■ ' ,y .; • . • -;v 

GoVEScNMHOTTB ^pro* - - - ^tpemaee w 


into -the finan- 


posal to ban local authorities cfad year -and cannot satisfac- 
from levying suppfemeatafry tordy be taken into account in 


nates is being supported by .the company budget and cash flow 
AssocktioQ Of Brit^QbaE^yers. forecasts ” says the association. 


of Commerce. 

' The association 


. y“A firm which allows for a 
supplementary in its castings 


strougty opposed to the plan to will- fceoder at higher prices 
foiw.councils propaeaog to levy than- a' rival which does not 
more than. > Ww«r deter- -Ifafitmdoes not allow for 
mined Jamt on rates to b°*ia supplementary me it will be 
a refmrendum^ 'Qns proposal fa ce d with a- djoice between 
*5 — • • . Govennnent. maMng * - loss • or emergency 

Finance Bill -was dropped' cutHniis costs," • • 

because of Conservative hack- ■■■'•• - ‘ ^ . ,. 

bench opposition and assdda- ...^? ie fefo er : ; . 1 * at 

lion that it wouM under- «onse^ient options which 

mine local democracy and ^locai , & dl0Tt .?°5 c ® 

respons foility' ^ — ' indthfe-a ban on recruitment 

But the supplementary rote *“** - <5^ “ ho ®* 

Ben m the Loral Govemmett Jeavers and^aduates and cut- 
•Finmree (No. 2) Bill does not back ? ™ training aHd youth 
constitute -; a fundamental oporturnty;; programme piaces. 
threat to load democracy, fee - The association also says that 


association: say* . -•/ f 
mUhcitaShyefe; s vfeanvfljsaOfl^- - 
In a letter to he fcent to a3i : 


reform {of the industrial and 
tommferisaT: rating system is 
necessary because the rating 


HPs before the -Mil's “Second system was having to sustain 
reading, when re- -a ^vel of-spending far beyond 

turns on - Monday, jlhe ^asso&ar.. . level intended. • • 
tion says so^decn^tary raffe' ‘ Although control of industrial 
demands are much more dam-' costs was essential, fee private 
aging, than an addition . of sector rould not flourish unless 
similar; size f» fee 1 nadisr-rste— necessary- infrastructure was 
demand. pbovldod. 


fire central sector of fee North 
Sea, it is understood that 
largely as % result of fee 
ooiporation’s pressure . the 
drilling rig Dbolyn Field 96 is 
continuing to drill below fee 
ori ginal target depth. 

British Gas is stepping up its 
search for hydrocarbons — 
particularly mature? gas — in 
deeper and smsdler reservoirs 
previously overlooked by the 
offshore industry. As part of 
this process British .Gas is 
investing about .£Sm on a 
.seismic survey of the gas 
bearing southern portion of the 
North Sea. British Gas is 
particularly anxious to find Hs 
own source now that it is faring 
fee end of fts monopoly powers 
over supplies. 

• The. corporation expects to 
set a record for distributed gas 
supplies in fee 24 hours between 
6 am yesterday and 6 am today 
—due to heavy demand brought 
about by the freezing conditions 
in fee UK 


Hard-hit ports 
! straggle to 
| break even 

By Andrew Fisher, 

Shipping ’Correspondent 

COMPETITION among British 
ports is Mkely to toughen this 
year as fee recession continues 
to bite and shipping lines strive 
harder to cut sea and land 
| freight costs. 

Two of the biggest ports, 
London and Liverpool, are 
working on ways to meet the 
Government’s demand feat they 
start breaking -even by fee end 
of this year: . 

Hus will be a tall order for 
the Port of London Authority 
and fee .Mersey Docks • and 
Harbour Company, which ran 
fee two ports. Both have cut 
manpower sharply and stepped 
up feeir marketing efforts to 
win new business. • 

The decision of fee Caribbean 
Overseas lines (CAROL) con- 
sortium to stop unloading at 
Greenock on Clydeside from 
January 22 and switch to 
Felixstowe shows how -quickly 
a port can lose business. 

CAROL accounts for about a 
fifth of fee container terminal's 
output .Its decision to move 
was made because of the costs.! 
of both inland haulage and of 
steaming to the Clyde. -1 


Hesketh to 
start output 
of l,000cc 
motorcycle 

By john Griffiths 

THE FIRST production model 
of fee long-delayed Hesketh 
X, 000 ec motorcycle will come 
off tite assembly line, at fee 
company's Daventry plaid: in 
fee next week. 

Hesketh Motorcycles, fee 
company founded .by Lord 
Alexander Hesketh in which 
investors have pot £Lftn, 
said yesterday It was satisfied 
engineering problems which 
led to the postponement of 
fee planned launch last 
August had been overcome. 

The company is re-employ- 
ing labour. By the end of 
fe te month it plans to re- 
establish fee 50-strong work- 
force it had in August when 
criticism of gearbox and 
engine noise led to the sus- 
pension of production. 

In fee past three months, 
while modifications have been 
carried oat, Hesketh has kept 
only 13 employees at 
Daventry, working alternate 
weeks. 

Mr Peter Gaydon, Hesketh ‘s 
marketing director, says out- 
put wiU be increased in 
stages to .rearih 40 a week by 
fee beginning of AprtL 

Hesketh’s production target 
for its £4*500 machine is 

2.000 in fee 1982 financial 
year starting March 30. The 
company says it has presold 
several hundred. 

It is expected that about 
40 per cent of the output will 
be sold in the UK Distribu- 
tion arrangements have been 
made in West Germany, The 
Netherlands, Spain, Australia, 
Japan and Canada. 

The U.S. is expected to be 
fee single biggest market, 
taking half of production. 
Sales to fee UR. will not 
start until August. Hesketh is 
taking special care to 
establish a strong network 
there, because fee U.S. is 
regarded as holding fee key 
to a planned expansion of 
output for 2983 beyond the 

2.000 a year. 

In spite of last month’s 
announcement of a farther 
£623,000 loss by Hesketh in 
fee first half of 1981-82. on 
top of a £300,000 less in 
1980-81, Hesketh’9 shares. 
traded on the unlisted 
securities market, gamed lOp 
from their 35o low three 
weeks .ago. This compares 
wife an offer price of 8 Dp 
when Hesketh was floated in 
1980. - 


Why die sand and gravel groups 
are going throngh a rocky patch 


THE BRITISH aggregates 
industry is tearing itself to hit 
rock bottom. Profits are mixed, 
turnover depressed and fee only 
type of buyer for an aggregates 
group is a company with a 15-20 
year commitment to marketing 
sand and grovel. 

Wife feat general outlook 
Blue Circle Industries last week 
derided to try to offload its 
aggregates subsidiary, BCA. 

Blue Cirde’s move is based 
on fee premise feet BCA is only 
a smaJl producer in national 
terns and sts aggregates opera- 
tions could prove a drag on the 
group's mainstream business in 
yearn to come, ft is another 
example of fee upheaval which 
has affected the industry. 

Blue Circle says its 
aggregates unit does not fit into 
its strategy of diversification 
away from fee building eyrie, 
hut stresses that fee medium- 
and long-term prospects for 
aggregates are good, if a com- 
pany is prepared to weather fee 
dismal Immediate outlook. 

Last year Hoveringham, the 
country's . third largest pro- 
ducer and the only significant 
independent aggregates group 
‘in. the UK, was taken over 
by Tarmac in a deal worth 
£40 m. The combined Tarmac/ 
Hoveringham market share is 
about 18 per cent 

Blue Circle hopes its disposal 
will be worth about the same 
as fee Hovetingham deal, given 
the similarities in fee two com- 
panies. BCA had pre-tax profits 
of £2m on £10.7m turnover for 
1980. 

Movement in fee industry 
last year included the acquisi- 
tion by. Amey Roadstone Cor- 
poration. a subsidiary of Con- 
solidated Gold Fields, of the 
entire ready mired concrete 
interests of British Dredging for 
£337,500. British Dredging said 
this move would allow it to 
concentrate its activities on the 
dredging. processing and 
marketing of sand and gravel. 

These moves alone' might 
seem insignificant, but placed 
in fee context of an industry 
which has steadily contracted 
in the past decade, whose pro- 
duction capacity has fallen 30 
per cent In five years, and Where 
no hope of recovery is forecast 
for the next 18 months, they 
suggest that the aggregates 
sector of fee economy is under- 
going fundamental change. 

Mr Robert Erife. of stock- 
brokers Savory, Hilln, says: 
“Fundamentally, fee industry 
is safe. It is desperately short 
of reserves with full planning 
permission as a result of 
environmental objections. 
There won’t be many smiling 


PAUL HANNON looks at 
an industry whose pro- 
duction capacity has 
fallen by 30 per cent in 
five years and where no 
recovery is forecast for 
at least 18 months* 


faces until sometime In IS83, 
and -fee companies are 
regrouping themselves.” 

Since 1975 UK production of 
sand and gravel has slumped 
from. 109m tonnes a year to less 
than 90m In 1980. In fee firet 
three quarters of 1981 produc- 
tion was about 63m tonnes. A 
similar decline has been 
recorded in hard rock 
production. 

The industry’s fortunes are 
based mainly on sand, gravel 
and crushed rock .production 
and have been tied to fee level 
of activity in road building, 
house construction and major 
civil engineering projects — all 
areas that have suffered from 
Government spending cuts. 

Setbacks in profits have 
followed. For fee first hertf of 
1981 Hoverin^ntm’s pre-tax 
profits fell to £465 ,000 from 
£1.39m on a depressed turnover 
of £35m (against £37 An). 


UK aggregates market 
(per cent share) 

Tanaac/Hover i n g fa am 18 

ARC 12 

THfing 6 

Badland - $ 

Blue Circle 4 

Source: Savory'. Milln 


ARC’S turnover in fee same 
period fell 1.5 per cent to 
£423m. Volume feH about 17 
per cent, wife operating profits 
down at £39. 2m from £43.8m_ 

Only Tarmac managed to 
show some profits advance from 
aggregates operations. 

The only note of optimism has 
come from fee Standing Con- 
ference on London and South- 
East Regional Planning in a 
report published in December 
on the state of fee industry in 
the South East. 

Local extraction of sand and 
gravel, the report says, is inade- 
quate. The region must import 
one-third of its requirements, 
widening fee geographical 
spread of the industry, although 
aggregrates have a maximum 
transport radius of 25 pules 


before they become uneconomic. 

Unused reserves wife plan- 
ning permisson are sufficient for 
10 years and restoration has 
nearly kept pace with fee 
amount of land excavated in 
recent years. 

The market share taken by 
marine aggregate landed fe the 
region increased slightly 
between 1977 and 1980. Rail 
imports, mainly of hard rode. 
Increased 40 per cent in three 
years despite fee dump in 1980 
total demand. The proportion 
of supplies (imported by rail 
rose from 8 pear cent to 1! per 
cent, or 52m tonnes, in 1980. 

Small operators find it easy 
to enter the industry, which uses 
little high technology- This has 
led to a lot of competing com- 
panies with a wide geographical 
spread, although the South East 
is fee most important single 
region. 

Small businesses will come 
and go until the larger groups 
thin them out through amalga- 
mation or takeover. 

The turmoil surrounding fee 
role of bodies like fee Sand and 
Gravel Association is an 
example of the mental reorgan- 
isation the industry is going 
through. SAGA represents fee 
interests of more than 90 per 
cent of fee sector — about 150 
members with control of 600 
pits. 

But four leading members— 
ARC, Redland, Tilcon and 
Tarmac — with English China 
Clays, have urged amalgamation 
of the industry’s representative 
bodies. This would make them 
more effective in dealing wife 
government and other commer- 
cial interests, they say. 

Jf this move succeeds it will 
downgrade bodies such as 
SAGA, hut many consider it a 
fundamental step to reverse the 
gradual decline of the industry. 


Heavy track 
limit backed 

RESTRICTION TO specific 
routes of large commercial 
vehicles making through- 
journeys as not opposed in 
principle by Merseyside's cham- 
ber of commerce and industry. 

The chamber has told a 
Greater London Council inquiry 
panel assessing fee effects of 
a possible ban on heavy trucks 
in London, however, feat those 
trucks making collections and 
deliveries off any designated 
network should have free use 
of access roads to premises at 
all hours. 


APPOINTMENTS^ 

Changes 
at Halifax 

The HALIFAX BUILDING 
SOCIETY is making fee fotlow- 
ing appointments. Following fee 
retirement of Mr J. C. Hogg, Mr 
J. D. Birrell has been appointed 
general manager (London) from 
January 26. Mr D. R. Taylor has 
been appointed assistant general 
manager and will take over Mr 
BirreH’s responsibilities at head 
office. 

Following the retirement of 
Mr A. J. Thayre as chief execu- 
tive the following appointments 
wifi take place in May: Mr J. O. 
Spalding will become cbief 
general manager. Mr . M. 
Macasidll, Mr N. S. Watson and 
Mr R, C. Wheway will become 
deputy chief general managers, 
Mr H. Gautrey, Mr E. L, 
Thompson, Mr D. C. Lauphlan, 
and Mr M. Fearnsides to be 
additional general managers. Mr 
C. S. Cocftroft to he general 
secretary. Mr J- R- Murgatroyd, 
Mr am Wykes and Mr T. W. 
Taylor to be additional assistant 
general managers. Mr A. C. 
Jowett to be solicitor to the 
society and a member of fee 
executive. - - 

Mr Robert J. Hodgson has been 
appointed managing director of 
BURR UP, MATH IES ON AND 
CO, fee principal subsidiary of 
Burrups Printing Group. 

* 

Mr W. H. Henry and Mr D. C 
Musto have been appointed 
directors of VULCANITE, a 
member of fee Ruberoid Group. 
Mr BL W. Morris has been 
appointed managing director of 
CATALIN which was acquired by 
the Ruberoid Group in September 
1981. 

★ 

UNITED BISCUITS (UK) is 
appointing Mr Anton Kicner as 
managing director of . UR 
Restaurants on March 1. "Mr 
Kiener was a director of Rank 
Leisure. 

* 

SWISS RE (UK) is ma king- the 
following changes in June: Mr 
(L B. Vischer relinquishes . the 
chair. Hp will be replaced a* 
chairman by Mr Clinton E. Geiser 
who will remain chief executive 
until he retires in June 1983. Mr 
P. E. Christen will become deputy 
chairman and Ur Brian Prevast, 
who is deputy chief executive and 
dne to succeed Mr Geiser in 1983, 
will become a director and has 
been appointed general manager 
as from January 1. Mr Brian K. 
Doody becomes deputy general 
manager. 

★ 

BRABURY GROUP has made 
the folio v.-ing changes: Mr 
William Brown has been 
appointed managing director of 
Brabury Broadcast Systems and 
Brabury Electronics (trading as 
PSM). Both companies are trad- 
ing from a new headquarters at 
Smifeam Bridge, Hungerford, 
Berkshire. 


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K- 


T he central production, kitchen at 
the Micheltn: Tyro Company^ 2ho-_ ! 
tory in Stoke-on-Trani has an air of 
c^m,zriaxsda£Oclecnqy 
- . Waking tmefexAhaixfto believe. This - 
single unit -produces well over 3.000 
meals in a 1 normal wprking day — a 
m$jor part pftbeir total requirement at 
thafiMtoi^TS-acrorista. 

The kitchen is designed around an 
all-eZeotrtc cook-chill, system. Pood is 
cooked and .-stored in a central prbduc- • 
tton unit up to four days In advance. 
Then, at service units equipped with 
electric Infra-red radia nt heat units, 
the chilled meala -are- regene r a t ed to bo * 
jsrisvadwlMmifefly’reneedad. ■ 

MicfoeBn operate on a shift system, 
so a meal served at two o’clock, in. the 
morning has to be as hot-andfreShas - 
nr^ served at lunchtime. 'With the new 
cook-chill operation, it invari ably Is — 
high - quslfiy Is one of the system’s 

greatest advantages. 

-Awathaq according to Mtchalins - 
head of catering Doug Beers, is the 
highly organised way- in which' we can 
prepare every meal'! ; Last-minute 
Mtohen panics are a fltfeg of the past. . 
Inevitably, MicheUn have noted 
improved efficiency as well as lower ■ - 
overheads. Last year they saved signi- 
flcanHy on Industrial cleaning — th» ' 

• new, aqntpmgot ^gayekiteflian. staff the" 
ttmp to -do It themselves. And the 
system Itself IS flexible eno ug h , to 
continue coping even if the de ma nd 
■Should ajqMLnd. » v 



Dues cooked, meals are taken straight to Iha 
blast ettfllap . (right). Later they will be 
heated and served to tbs same trays exactly 
w hen a nd where thay*re needed. 


Tt nt^n nt tWn»t 2 iflt rmnt-tfhlll la onjy 

for firms needing SDOO roeals a day 
However many staff you are catering 
foq fears is a range of equipment 
sveSable to bring you all the 
advantages already demonstrated at 
iflaann 

FOR MORE INFORMATION TICK BOX 
JTO:l - \ 





ALL THAI’S NEW IN GATERING; 


I n tbs .tjwpvjreara ; etoce; fee laa* 

Hctafyotp^ .eUtibitioB, p. lot .-Am 

bean happening 1x1' tbs world of 
ca ter ing — and the only- sore wayjjf 
Keeping up wttli what’s new is to go to 

feteyearte3icw;^01yinplataIiOiylon, 

tram January 22-27. ■ 

HoteJympia Is the regular totav 
n atonal me eting -place far people from 
all rides' of the hotel and cate ri ng 
indostry. Whatever" your interest — 
from . counter, pubs to internat ional 
hotels « you arocertain to benefit from 
fee array new ideatfthafc will be on. 


display. 

In these thaBenglDgtaines, ttfe? now 
more important than everthat fee best 

posrihlff service is obtained at fee-best 
possible -price. And -in fee field of. 


' icftrLhtyh wqjrf jrrtfmt this in Bans energy 
’rflffiriency - the main theme of fee 
JHectricfly Council^ 'presentation on' 
StendBSO. On display will be some of 
fee, latest riseteic equipment designed 
far epstriO&cttve cate ri ng, all available 
through, your Electrfcfly Board. New 
tactutiquee planned ibr g gramniy — like 

-aOOk-cMU Twaal jr mrh mi/i/vn — will fiiSO 
be highlighted. Members of fee Sec- 
trici^y Cctmoflfe Project Planning Unit 
will be on fea <e»nd to show you the 
equipment and to advise an your 
. . catering operation. ‘S&u wiR also be able 
* to learn ahemtfee unique “Approved for 
Safety” testing scheme ibr electric 
“ eatertng equipment. 

Whatever jotp interest in fee cater- 
ing business, Hotelympia has some- 


thing Jorycru.- ^ ■ 

JBB BURS TO VZSET STANTJ BSO TO. 
"SEE HOW BaSGTKICITT’ GAN HELP 
■SDUBBTOSOSESS PROSPER UT THE 80a 



M ass cate ri ng is In essancs the 
adaptation of one ofmanfe oldest 
crafts to fit the modem qge. And 
this year's Electricity Council confer- 
ence on cost-effec ti ve catering is all 
about aligning the most modern cater- 
ing concepts wife fee best of tradi- 
tional skills. 

The conference Is designed for 
senior caterers, managers and their 
advisers from all branches of the 
industry: It alms to demonstrate 
the potential for extra economy and. 
quality now offered by fee latest 
enejgyefficlent electric equipment. In 
combination wife modem planning 
and cost analysis. Ways of making 
better use of energy will be a theme of 
the conference. Equipment manufac- 
turers and successful users will be 
there to present the new technology, 
and the operating savings it can bring. 
Also under review will be the 
economies offered by "heal; recovery 
systems, and to emphasise that cater- 
ing is above all a practical craft, there 
will be an all-electric kitchen on stage 
in fee main conference for demon- 
stxationa practical sessions. These 


COST-EFFECTIVE CATERING 
1982 




win aim at Identifying the applications 
and market potential of individual 
items of equipment. 

The latest cook-chill techniques will 
be prese n ted, wife an emphasis on fee 
improved convenience, cost control 
and profit they can bring. Staff man- 
agement, motivation, and training will 
be covered, and an impressive array of 
equipment will be on show. 

The speakers will include successful 
professional caterers as well as food, 
equipment and energy suppliers. There 
will be ample opportunity for delegates 
to meet and mix wife speakers and 
fallow dele ga tes from every branch of 
catering. 

This conference, fee fifth. In fee 
Electricity Council's highly- successful 
series on cost-effective catering, will be 
held at the University of Sussex, at 
Brighton, March 22-25, 1982. 


FOB MORE DETAILS CONTACT 
im. B. S. HALLIWELL, COlfFERENCS 
ORGANISER, MARKE TING E32AET- 
MEHT THE ELECTRICITY COUNCIL, 
30 MILL.RAUX. LONDON SW1F 4RD. 

.. ■ T "# \\\X\ 


-h 




PLANNING IS THE KEY TO SUCCESS. 


I f you are in catering, you are in a 
challenging business. And Tike all 
business today, mode m catering 
reached a hi gh degree of com- 
plexity It needs careful planning if It is 
to be successful At the Klectrictty 
Council these facts have long been 
. recognised, which is why fee Council's 
Project Planning Unit exists. Its pur- 
pose is to advise caterers on the 
equipment and layout most suited to 
their specific purposes. 

Many existing catering operations 
are, by today’s standards, inefficient 
bofe in initial design and in day-to-day . 
operation. A common fault is aver- ■ 
Specification - equipment is installed 
to meet peaks of demand -which in 
practice are rarely if ever encountered. 
Thus, and unplanned random usage of 
- equipment, can be a big drain on both 
staff and energy resources. The -Project 
. Banning Unit headed by David Taylor 
- provides a rational overall view of all 
the factors feat can lead to catering 
efficiency it will cany out project 
stodfes, or . provide drawing design ■. 
services, based' on your individual 
mane.' requirements. • These indicate 
what sort of equipment wffi best suit 
your needs. s«d fee - most energy- 
efficient way of usinglt 
New techniques are also under con-' 
stsnt review. For large centralised 
catering services, for example, meals 
can be cooked and frozen or chilled in 
advance, than served when needed. 
Wife fee right planning, techniques 
like these pan cut right down on 
equipment and energy costs, and maxi- 
mise productivity The same quality 


meal Is produced as wife traditional 
methods, for a much lower unit cost. 
There has probably never been a 
wider range of equipment or tech- 
niques for you to choose from. Bo fea 
possibilities for efficiency end quality 
have never been greater With the 
Egqject Planning Unit helping to match 
electric catering design to your precise 
needs, those possibilities are greater 
stiff. ' 

THE SERVICES OF THE PROJECT 
PLANNING UNIT ARE AVAILABLE, 
FREE OF CHARGE, THROUGH TOUR 
ELECTRICITY BOARD. OR YOU GAN 
CONTACT THE TEAM DIRECT AT THE 
ELECTRIC CATERING CENTRE. 45 ST 
MARTHTS LANE. LONDON WC2N 4EJ 
(TEL 01-836 7337 OR FREEFONE 
2272). 


Please ssndme more 
Information, on electric 
catering. I am particu- N A M E, 

lary Interested in the 
^cmingtopica ADDRESS 

Kease tack as appro- 
priate(nXonjy> 



>.=;■> 


■ tm 

The project planning unit’s design 
will analyse th« best combination of elective 

equipment for yaur cateringjieeds. 


U L Cook-CMl 
System a. 

EH £L Staff 

Catering, - 

O 3. Commercial 
Catering ' 


Fosmoir. 


Please send thecoupon toe j 

The Electricity Council | 

Information Centre, P0 Box 2 •• 
Central Yfey FelLham, Middlesex. 


CATERillCfiSC 

The Ekctrtdty Council, England and Hcfe. 




Financial Times Tuesday January 12 1982 


i. 


UK NEWS 



Optimistic London Transport chairman prepares to ride the cheap fares storm 

could get a court ruling of cpnuBfirdal.reraa^epwd* Wflltp ffpll 
>. question. of bow to inter- as it Is done in Atianta In toe . y f 1111 V XXVlX 


BY LYNTON McLAIN, TRANSPORT CORRESPOND0IT 


SIR PETER MASEFIELD, the constitutional crisis 
70-hours-a-week part-time chair- Government • 


man of London Transport, was 
expected to be up at 5 am today, 
the day of the extraordinary 
meeting of the Greater London 
Council called to seal the fin- 
ancial future of LT»in the light 
of the Law Lords’ ruling outlaw- 
ing the council’s cheap fares 
policy. 

The meeting will discuss 


The council, led by Mr Ken 
Livingstone, was elected on the 
basis of its cheap fares policy. 
Rejection of the higher fares 
necessary for London Transport 
to meet’ the Lords’ interpreta- 
tion of the Transport (London) ■' 
Act 1969 could lead to the dis- 
bandment of the GLG- 

relish 


nn fhe issue at the heart of the experts. ‘ The problems facing London "I 

Lords^nillng--ara recognised London Transport, is not. Transport- have “brought to a .on the question 

as essential Dolicv instruments, going to crash, Sir Peter is sure focus one of the main, issues to pret the ruling by the Law U.S. 

I^Sotk ?OTLndQ™Ttons- of t&t But fa» is equally sure, be settled." . .. . Lords, but ultimately it is a But Sir -PWer beeves the 


port begins at. 7 am. Before 
then he is likely, as usual, to 
work on one of several new 

books- , . „ 

. Perhaps prophetically, the 
book nearest to completion is 
railed To Ride the Storm. , 
This is the result of Sir 


that the crisis demands urgent 
attention by the Government - ; 

“I, take a broadly optimistic 
view of what , will happen," he 
said at the weekend. "This is 
because I do not believe the 


scenario 

By Arthur Sandfos f 


country will allow the standards law, or ah 


■ The Lords’ ..ruling iafled to question for the Government to British Government does not 
'clarify the legal position of resolve.” understand - -the- .problems of 

subsidies. ■ ' ' Sir Peter wants the Govern- public transport. - 

There was an urgent need ment to develop a .. ^ uot hrfpthisGdv«ra- AT A: LITTIJE after midnight 

for subsidies- to : be “ “ade pobty forurban ^nsport. He ^ at : t!te ^ election. if it the group making its waff- 
legal. '. He. -believed ~a new is also keen to see -a policy. — _ . - 


sz 3HS fe7F£a"-l 

t#HSS 3SS3E =« ‘IS 


of. service 
fall.” 

He believes the country has 
to decide what it wants from 
public transport and what it is 
prepared to pay. 


believed. ^ “new is also keen to s|e . a poi^y. ;js geen ^ be tiie. Government 4 from Innsbruck to Suaw 
amendment to the forming body set up unawtne ^ lef{ Transport, to, f' started to wonder what it wg 


in the capital to existing law” would be pro- Transport Secretary to decide . esai * 

• - ■». j.i , - ■ -■ . .. . .i 1.W..T mnrTna nf miKlir AUl * 


duced. possibly this year. 

“It is absolutely critical to 
clarify the subsidy issue, and 
we have up to March to sort 
it out 


an the level of sefvfeo of public . *pH 

transport, at agreed, prices. London^ . .Transports 

He favours subsidies paid bn buses are-.a symbw of Lmidon I 
the basis of -ft of subsidy for ' which also meet a soda! need, 
revenue support for every. £1 Can all that be abandoned. 


British Shipbuilders admits copying 
warship design without 



BY RAYMOND HUGHES, LAW COURTS CORRESPONDENT 


BRITISH Shipbuilders admitted 
in the High Court yesterday 
that it had constructed and 
tested models of a controversial 
warship design without the 
authority of the designers, and 
that evidence resulting from the 
tests had been destroyed or gone 
missing. 

The nationalised corporation, 
which comprises all major 
British shipbuilding concerns, 
admitted that the two models 
had been based on the vessel's 
bull plan, copied without the 
designers’ authority. 

Existence of a second model 
had been “ actively concealed ” 
from the designers until last 
week. British Shipbuilders 
admitted. The model itself was 
destroyed last May. 

The admissions were made at 
a preliminary hearing in . an 
action in which Osprey Ltd and 
T.T. Boat Designs, designers of 
the 50-metre offshore patrol 
vessel Osprey, allege that 
British Shipbuilders have 
infringed the copyright in the 
vessel's hull design. 

Mr William Blacfcburne, for 


British Shipbuilders, told Mr 
Justice Whitford that the 
models had been made and 
tested at the Ship Model Experi- 
mental Tank ( SME T) at St 
Albans. 

Senior- officers <rf Bri tish 
Shipbuilders, of Which SMET 
was a subsidiary, had only re- 
cently learned -that a second 
model had been made and sub- 
sequently destroyed. 

Mr John Mummery, for the 
designers, said that it was -only 
last week that Osprey learnt 
from British Shipbuilders that 
a second model had been made 
and rested and that the evidence 
about it had been destroyed or 
gon« missing. 

The judge said that British 
Shinbuilders should swear an 
affidavit giving details of the 
circumstances surrounding the 
construction and testing of the 
second model, and of what had 
happened to the test document- 
ation. 

He adjourned the application 
that Osprey should lodge in 
court £45,000 security for 
British Shipbuilders’ costs, as a 


condition of being allowed to 
proceed with the action. 

Mr Blackbume told the court 
that British Shipbuilders had 
offered to settle the action by 
giving undertakings in substan- 
tially the same terms as injunc- 
tions sought by Osprey, and 
paying £100 damages, or such 
other sum as was found to be 
appropriate. Osprey had not 
responded to that offer. 

He said that British Ship- 
builders admitted copying the 
Osprey’s hull plan without the 
designers* express authority. But 
he denied infringement of copy- 
right or breach of confidential 
information. 

'The Osprey design had been 
a matter of controversy for 
some years. Osprey said it 
provided production economies 
while maintaining efficiency in 
“ sea-keeping.” 

The shipbuilding and naval 
establishment represented by 
British Shipbuilders, had taken 
the view that there was nothing 
novel in the design, which had a 
dumber of serious snags, and 
which derived from a vessel 


that had been built for the 
Mexican Government which 
owned the design copyright 

In discussions in November 
1880, ‘ involving - Mr Robert 
Atkinson, British Shipbuilders’ 
chairman, and Mr Reginald J. 
Daniel, . one of. its directors. 
British Shipbuilders had been 
persuaded by Osprey to reassess 
the design. 

It was a matter of acute 
controversy whether British 
Shipbuilders • had . been 
authorised to make a test 
model, but no proper reassess- 
ment of the design could have 
been made with a model being 
constructed and tested, 

That process had begun 
shortly after the November 
discussions, with testing in early 
February 1981. In late March 
last year, Osprey was informed 
that one model had been made 
and tested. Osprey protested 
and started legal action against 
British Shipbuilders, British 
Shipbuilders Hydrodynamics, Mr 
Daniel, Mr David Moor, super- 
intendent of SMET, and Vickers 
Shipbuilding and Engineering. 


Solicitors’ 
right to 
advertise 
supported 


High technology plan 
boosted by £2m 


doing among tite snowdrifts 
'■a£ Steffoittetoire- For mem.. 
. as 7 for- thousands of to 
E uropeans .these past tew 
days,' travel, has become a chilly 
adventure. ' ■' ' \ 

My own team had departed- - 
- Jhnsfcrucfc.sfci suburb of l#s 
at 8 am in driving snow. - 
Our Thomas Cook guides joBsed- 
us jcto coaches, for the 
ann ed ttrreeiwwr drive to. 


Stonfe*" airport. It was ttra 


BY TW DlCKSOfl 


Talbot says 
Coventry 
layoffs 
indefinite 


By Arthur Smith, Midlands 
Comipondcitt 


TALBOT told union leaders last 
night it could not give a recall 
date for 1.900 Coventry workers 
laid off because of problems 
with a contract to supply car 
kits to Iran. 

The workers were laid off on 
December 11, originally for 
nine working days. The com- 
pany blamed slow assembly in 
Iran caused by shipping difficul- 
ties and shortages of compo- 
nents made in Iran. 

Talbot stressed its confidence 
in the contract, which it said 
would be worth £lbn in. the 
next five years. 

The company stopped produc- 
tion of the kits because of the 
Increase of stocks, in the UK. 
Exports from Newport have 
been held up. partly by Iran’s 
failure to provide letters of 
credit to pay Talbot. 

The company said yesterday 
it was confident of receiving a 
letter of credit for 5.000 kiri in 
the next few days. Production 
could not he resumed until 
arrangements had been made 
to ship all the kits held in the 
UK 

The company refused to give 
details of how many kits are 
in the UK. Union sources put 
the figure at about 27,000. 
Talbot shipped about 70,000 last 
year and in 1980. 

Exports were down because 
of the ecnnomic disruption iu 
Iran. Talhot believes there is 
demand for about 100,000 kits 
a year. 

• Senior Talbot shop stewards 
decided in Coventry yesterday 
to recommend acceptance of the 
company’s pay offer to the 5,000 
manual workers. Mass meet- 
ings -will be held in the next 
week, but there are no siens 
of militancy among the work- 
force. 

The company has refused to 
budge from its original offer of 
a 21 per cent pay rise from 
January 1, It conceded that 
about £5 of bonus earnings, 
currently runnlne at about £10- 
£15 a week, will be consolidated 
into basic pay. 


Rolls-Royce in U.S. funds move 


BY DUNCAN CAMPBELL-SMITH 


ROLLS-ROYCE the., state- .director, confirmed yesterday 


owned aero engine company 
plans today to join the British 
public and private sector com- 
panies raising funds in the U.S. 
commercial paper -market It 
will sell up to about $20m of 
short term .debt as the first 
tranche of a total $250m borrow- 
ing to be guaranteed by the UK 
Government . 


that it is intended to fond this 
with one further, external bor- 
rowing as well as additional 
Government equity already 
arranged... Cash flow -is then 
scheduled to break even next 
year. • 

Rolls-Royce said it was 


Though raised in New York, it 
effectively will be sterling debt 
- It- is expected that the fidJ 
amount of the issue win be 
launched over a period of 5-6 
months • as in the. cases of 
BritiA Gas and the Post Office. 
<now British Teleconnnun l ca- 
tions) which went to this 


attracted. to the U.S. commer- : market for $2 50m each in 1978- 
dal ' paper- market because it 1979. 


By David Churchill 

A STRONGLY- WORDED 
attack on the failure of the 
Law Society to allow indi- 
vidual solicitors the freedom 
to advertise their services was 
made last night by Mr Gordon 
Borrie, director general of 
fair trading. 

Mr Borrie told a London 
meeting .that “five years of 
discussion and argument on 
the issue was long enough.” 
He added that u we need to 
put an end to the unreason- 
able — and for some in the 
profession unfair — restriction 
on competition.” 

Mr Borrie's comments 
follow various reports in 
recent years urging the Law 
Society to allow solicitors the 
freedom to advertise. In 1976 
the Monopolies and Mergers 
Commission suggested such 
freedom, followed in 1980 by 
a Royal Commission report 

Mr Borrie stressed that it 
was only suggested that 
solicitors should he given the 
freedom to ehoose whether or 
not to advertise. He also 
suggested that advertising 
could eventually lead to lower 
charges. 


LLOYDS BANK and . Birming- 
ham. City Council announced 
yesterday that they are each 
potting £lm into a new com- 
pany to fund high-technology 
investment in Birmingham. 

The joint Initiative will be 


bank, the city council and Aston 
University. - 

Lloyds said yesterday the new 
company would help ; companies 
•- very much at the pre-launch” 
stage. The b&nk ' would put in 
its ■ film - interest-free - for two 


i doselv associated with the new years, at which point the whole. 
Aston Industrial Science Park, project would be reviewed. 


a site which adjoins Aston 
i University and which is in- 
j tended to be a breeding-ground 
I for emergent high-technology 
j business. 

: Birmingham City Council has 
! already invested £ 2 .am in the 
j site, to buy and renovate 
property. Phase I of the park 
l is due to open this spring. 

The £2m Lloyds-Birmingham 
City Council initiative is 
designed to promote and to pro- 
vide financial assistance for 
new ventures -setting up on the 
site. . .. 

Although limited by guaran- 
’ tee, the company has no capital 
of its own. The funds consist 
of interest-free, loans from the 
two partners. Assistance will 
be given in the form of grants, 
loans and. where appropriate, 
equity capital. 

A full-time managing direc- 
tor will be appointed. Lloyds 
plans to second a senior man- 
ager. The company’s board, will 
include representatives of the 


Suggestions 
of recovery 
‘premature’ 


By Arthur Smith, Midlands 
Correspondent 


The total will complete Rolls- ■ offered the lowest rates avail- 
Royce’s external' borrowing' re- able to prime borrowers. . any- 
quirement as agreed with the where. 

Government 2£ years ago for The company has a large pro- 
thc period up to the end of 1981. pqrtrnn' of its business In the 


It comes on top of the £140m 
borrowed in January 1980 and 
will take account of the com- 
pany’s net £200m cash outflow 
last year. 

It should only remain, for : 
Rolls-Royce, under . its present 
plan, to provide for a net £100m 
cash outflow for this year. Mr 
Peter Molony, the financial 


portri 

U.S. .Naturally, it is not averse 
to being seen carrying' the full 


guarantee of the UK Govern- 
ment in New York ' financial 
markets. '_ 

The borrowing programme 
will be-.-covered at every stage 
by foreign exchange operations 
to eJimmate the doliar/sterMng 
exchange risk on repayment 


' The rate of interest applying 
at each stage of the issue will he 
decided according to prevailing 
conditions by Lehman Brothers, 
the company's New York invest- 
ment hankers. 

. Market condition? will also 
dictate maturities, though it is. 
hoped to extend these nearer to 
the market’s limit of 27.0 days as 
the issue progresses. • 

All tranches anyway will be 
rolled over as they mature, giv- 
ing the whole borrowing a long- 
term standing. . . 


Scuttled tanker cargo ‘not lost 5 


BY RAYMOND HUGHES, LAW COURTS CORRESPONDENT 


INSURERS OF the cargo of 
the tanker Salem, scuttled off 
the West - African coast in 
January 1980, appealed yester- 
day against a court ruling that 
the cargo was lost as a result 
of a peril covered by the insur- 
ance policy. 

The insurers challenged in 
the Court of Appeal the finding 
of Mr Justice Mustill in the 
Commercial Court last April 
that the loss of the 196,231 
tonnes of crude- oil on the 
Salem had been, a “taking at 
sea” against which the cargo 
owner,- Shell International 


Petroleum, was insured. 

The Commercial Court held 
that the taking occurred when 
the Salem, at the instigation of 
the conspirators who per- 
petrated the fraud, diverted 
from its ostensibly voyage from 
Kuwait to Europe and dis- 
charged the bulk of its cargo 
at Durban. 

Shell was held to be entitled 
to 625.5m- from the insurers, 
haring already recovered the 
$30.5 m balance of the cargo’s 
•om 


The cargo was insured by 69 
Lloyd’s syndicates and. 29 in- 
surance companies. Mr John 
Hobhonse," QC, for the insurers, 
told . the Appeal Court the 
agreed facts, about the con- 
spiracy and . the .loss contained 
nothing- to support a finding 
that there -had been a taking 
at sea. 

What there had been was an 
“acquisition by' false pretences 
with a dishonest intention" — a 


fraud not- covered by the stan- 
insured value from SFF Asso- dard ship and goods policy on 
elation. South Africa’s official the cargo, 
oil purchasing agency. The hearing continues today.' 


SUGGESTIONS FROM White- 
hall and Westminster of an 
improvement in industrial 
activity were premature,- Mr 
Chris- Walliker,. chairman- of 
West Midlands region of the. 
Confederation of • British 
Industry, said yesterday. 

. Businessmen in . the 
country’s industrial heartland 
would believe in the. upturn, 
only when they saw orders' 
rising. Evidence of a '■ very 
slight Improvement in demand 
was only - tentative. Business 
confidence remained low. 

He said, however, that 
many Midlands companies 
had moved into new markets; 
Introduced new products and 
raised productivity. 

The CBI, in an initiative to 
help companies pool informa- 
tion and seek solutions to the 
region's problems, was 
staging a conference “Win- 
ning Through" in. Birming- 
ham on March 4. 


Sir Jeremy Morse, chains** 
of Lloyds Bank, said yesterday: 
“ Over the years Birmingham 
and the West Midlands , have 
often seen hard times bufnever 
has there been a greater ; need 
for the effective. -Rpplfgatfon. of 
imaginative ideas. The Indus- 
trial Science Park as just such 
an idea and we are very glad 
to back -it with both funds and 
people.” 

- Companies : moving -on. to the 
park site can call on the exper- 
tise of 500 aeadnmc staff at the 
university. The interaction of 
university and - tenants . is 
expected to -be a. key -to the 
park's success. ' \ 

It is expected successful 
companies wHl expand to. other 
sites- earmarked by the city 
council.. 

. The initial impact on.jobsis. 
expected, to ;be smaJL It is 
hoped the long-term . employ- 
ment benefits wiB>e signifiMsrt. 

. . Lloyds Bank sendees to 
smaller businesses; Page 12 


we. discovered that Teutonic 
efficiency- does not necessarily . 
extend to the- autobahns.' • 
Nose-tiHafl we crept up the A? 

wtfiefc runs from Austria .fo 
• Munich. M one point- w 
. .stood ateB tor an hour. 

■ ~t3ier$ ~ cars ■ abandoned • 

through* Sack of petrel er 
' driving iH po ked o xninptHfe 
horn fbe totowdrifls; ' . 

Sucb lengtiry journeys pr otfooeq 
bidden . strains. At toe serried. ; 
area ;/ we managed' to' enter 
VfflSer five" hours. * ■■•The— afem 
r, pwfe. foe ifee l*va«ries. to 
- tike., the storming at to® 


Sewed hours -after tearing- Sons* 
brtick we wqre on the Dan 
-ASr jet scheduled to leave 
Munich, for Gatvrick. ; 

We edged to .the end off the 
runway fin- take-off. - The 
, captain - crackled o%er> the 
loudspeaker. . “Tm forty, 

ladies and gentlemen. : Tbey 
. have now dosed; the. airport 
.We must. taxi bade, to the ter- 
ihinaLT ’ 

An hour-and-a-half later we: 
tried: again.- ..By then;- the , 
airport authorities ' ..hid'. 
.! de-iced the runway. 

Once more we taxied, up- fop 
take-off. . “ Ladies- and gentfe* 

■ .-men,'*’ came the voice. -* JConT:- 
• r bad nssre Tm afraid: 1w m 
' tbey’ytf 'dosed Gatwick.” Back ' : 
• we' went to the terminal. • 


Living standards and 
company profits improve 


BY DAVID MARSH 


BOTH., company profits and incomes was still. 3 per cent 
personal living standards lower- in the July- to September 
improved in the third quarter quarter compared with the s$nre 
of last year, benefiting from the - ; period In 1980. : This refl 
slight upturn in the economy. /. the impact of higher taties 


British tractor 
purchases may 
increase in 1982 


By Richard Mooney 


Retirement leads to Burmah reshuffle 


BY RAY DAFTER, ENERGY EDITOR 


THE BOARD of the Burmah 
Oil Company is being reshuffled 
as a result of. the planned retire- 
ment of fitr Stanley Wilson, 
group chief executive and man- 
aging director. 

Mr Wilson, with Sir Alastair 
Down, now nonexecutive. Chair- 
man, has been largely respon- 
sible for the recovery of 


appointed deputy chairman. Mr tors, joined Burmah In Janu- 
Campbell . Anderson, executive ary 1980 having been chief 
director responsible- • for -.executive of - Panocean-Anc'o 
Burmah’g. industrial interests, from- 1976. He had previously 
will become managing' director,- ^ been ’ managing director- of 
Mr Lawrence Urquharf, finance Panocean Shipping- and Ter- 
director, will be appointed chief minals, a chemical transport 
executive of Casfrol Worldwide, and storage company jointly 
Burmah, currently involved . owned, by Ocean Transport and 
in a takeover bid for tile Croda Trading and the Peninsular and 
Burmah following its- financial International chemicals, group, Oriental Steam Navigation Gom- 
collapse in 1974-75. Mr Wilson said yesterday that a new group • Pahy. 

is to retire on June 4.- ; finance director, .would be Mr Anderson, who will be in 

Mr John Maltby, executive > appointed in due course. ' - charge of day-to-dav manage- 

director responsible for Mr Maltby. who will have ment affairs, joined Burmah in 
Burmah’s oil interests, will be overall control of policy mat* 1971 


TRACTOR PURCHASES by 
British farmers, are 'expected 
to Increase 8^ per cent this 
year, according to. the 
Agricultural Engineers Asso- 
datioo- 

In 1981 .the total fell 2.2 
per cent to 20,773 units but 
there was a noticeable rise in 
the second half. By mid- 
summer the level was run- 
ning 14 per cent below, the 
previous year's level! But the 
market- recovered from 
August, helped by improved 
harvest prospects. The 
second half showed a 13 per 
cent improvement over the. 
same 1980 period. 

• The most popular power 
range last year was 65-80 
horsepower, which accounted 
for a third of sales. 

In units terms English 
fanners bought 0.8 per cent 
more tractors in 1981 than In 
1980. But the - Welsh bought 
11.5 per cent, the Scottish 9.9 
per cent and- the Northern 
Irish 17 per cent fewer. 


Government figures published 
yesterday show that gross trad- 
ing profits of the company 
sector rose about 10 per cent, 
seasonally adjusted, between 
the second and .third quarters. 
Living standards, measured hy 
real personal disposable 
incomes, increased by a " less 
dramatic Ofi per cent— the first 
rise since the end; of 1980. ' - 
' The improvement, in cor- 
porate profitability coines partly 
in response to' an- increase in 
trading volumes, as. well as to 
drastic pruning throughout, the 


the lag in’ -wage rises behind 
inflation, during the yeiar. ; . 

Between .the. third quarters of. 

1980 and 1981 total , personal 
income ■ grew fi per cent but 
tares rose lfifi, per cent and 

national insur^e. contributions ..- and fried A 

17 per cent , This. reduced the time fS^he runwa^ 

1 % in:.disposabte;.incomes.to 'iKiffie toSS ’ 


Free drinks 

By now the. duty free hfvds 

- 'had been ' broken mtff >md 
. free drinks were being : 

- by an apologetic crew, 
one was. growing merry. 

-' Quite quickly all stocks were 
-. drunk dry. - New . supplies 
were brought aboard to loud 
cheers. . . 

Dan Air thoa biJeke op«i the 
packed lunches. . 

There was a brief' moment off' 
-entertainment, when ah open 
vent allowed - deicing fluid to 
.. : p€ pumped -smokeJSbe -into 
ffnterite^'ofjtfaO aircraft' 
'^we’re on fife," someone yelled. 

' “Good ~ God 1 ’vr muttered a 
' Stewardess. “Nothing ' to. 
. J wpny .about,” . said the nn- 
: flappable captain. • 

We ref-ueHed,' having wasted , 
many gaHpns taxring around 


only 7.5 per cent— which, after 
allowing for inflation, amounted 
to a fall of 3 per cent in real 
terms. 

• Spending in the shops in 
.November fell less than 
originally thought the Depart- 


recession: . Many companies , ment of Trade said yesterday, 
have been- rebuilding their It issued revised figures show- 
finances by laying off staff -and ing that the seasonally adjusted 
cutting stocks. • ' _ . -- . index of retail totes volume fell 

The small rise in living . 0.9 per cent in November corn- 
standards in the third • quarter ".pared .with October -to 111.0 
was due to a. smaller fall, in.- (1976=100)- This ’ .compared ] 
employment and a -rise mi hours ;wth the original estimate uuyJe 
-worked. In spite of the-increase, last month of a 1 A per cent 
purchasing power of - average decline. 


Owen urges that Britain 
should cancel Trident 


BY BRIDGET BLOOM, DEFENCE CORRESPONDENT 


off to Gatwick — we hopei| A 
:ffew of us organised a draw on 
which airport we woitid ftmd ; 
at. 1 won. “Sorry about tins,” 

• said the captain. '“Wer-are 
being diverted -to Manchester. 
Birmingham, is already: ffuB - 
up.” r -was £1J20 ritiher. .. 
A- small cheer went up as we 
. landed at 'Manchester, chilly, 
snowy and dark. We grabbed 
our hand baggage and dAty- 

- frees. ..“Weil ladies - and 
gentlemen," came the cap- 

- -tain 

This time the story was that ' 
Manchester, • unused to. such 
= a rush of business, did" not 
have the: baggage handlers to 
cope with aircraft coming-out 
_ of the skies like : so many 
•frozen bees. . 

*Tve been, told to keep yon 'bh 
-board,” said -the captain-. i *But - 
I’m: not a jailer and if you 
■ want- to get off that’s up- to 
you.”.* . . - 

By then everyone had come : to 
love their cotofortable . seatz< 
tiieir- friendly -coropanians and ' 
. their helpful hostesses. We. 
•stayed. The; stewardesses - 
made, coffee. - 


THE GOVERNMENT’S decision -.which is designed ’to modernise 
.to modernise Britain’s: nu'clear. the . British Polaris missile, 
deterrent with ,U.S. Trideirt -Chevallne’S. projected costs have 
missiles should be cancelled, -Dr. risen from- ah original 2240m: 

David Owen, one of the leaders —when it was approved in 1974 
of the SDP-Liberad alliance, be? by. Mr Harold Wibon, then. 

li ? ves ’ Prime Minister, to -ahjeistima ted | An hour and a half liter they 

Dr Gwen, who was Foreign 1 CK ^ a ? r - L . ' : : ' let ua off. 

Secretary under the last Labour Dun *’ g Labour \govertir .Airlines take different attitudes 
Government, said on Granada m ent me cost of-Gheyaline .was . • when delays occur. 

TVs World in Action last night ' no t 'diselose d fo PmiiarDfent • - British : Airtours (the Mtish 
that be thought any SOP-Lfoeral . ” Dr Ow c u. who in 1976-hecame ' ' Airways subsidiary) wit Jts 
governmem -‘should caricel," P 3 . 11 . of the sroafTt- Erimp'.'of sttnnded emtomers into Man- 

Trideot — especially since “vast ™msters concerned • with Chester hotels.- ' Hard-nresaed 

costs” would not have. been in-, uhervahne, told on Iast-'rilgfttV- ' : taker had coaches readv for 
curved by 1984. programme, that be - • what promised to be a hair- 

Dr David Greenwood, direc- ; rai6togxide<own the ML Dan- 

tor of the Aberdeen Centre for : arranged' for -the- 

Defence studies, ™s*t «« M *i.« ■ lor conceabn g .Che^alineVi r -'trafiifi' t ,«. • 


: to; : London - to be 


said -on. the ' f ^ crac ?3^g .CheValjne*s^c6sts,’t '-trains' 

programme that he believed the . l i l *?' ^ - -delayed and : additioiS' 

cost of Trident, at July ’1980 sil< ? ul d ''contmUe to . Coaches put on. 

TiriAac - — .be about JiV, 1 much -had bfliem- Manchester 'iirport- does -riot 

original ^ve 24^’ bmSTl S3 

of abo. . «». «: SterltaE- fmclJSS. 


pricey would now -be 
£8bn against the 
government estimate 




la®?- nteal tthfeMoi to fed . 


examined the Cheraline project ately to 

Danger of Britain falling behind in producing complex software 


Nofood' 


BY GUY DE JONQU1ERE5 


’•♦A' There^was for eating 

~ - t however.' - 


BRITAIN is in danger of fall- 
ing behind in production of the 
complex programming systems 
needed to apply computer 


quickly to-a flow of continuously 


the fragmentation of resources. 

The working party calledf bn 
the Government and nationa- 
lised industries to standardise _ 

power more widely in manu- technical-requirements for real- changing information, it can 
factoring, telecommunications time software— the program- account for as much’ as half the 
and defence, a report prepared miag which enables computers, value of a complete system, 
by the National Economic Do- to react instantaneously ■ to 
velopment Office warned yes- changes in the data which they 
ter day. are required to process— to 

The report by the NEDO help provide additional tools 
electronic capital equipment for software suppliers and to 
sector working party, said al- co-ordinate existing public sup- 


crucial link is applications like carried out anywhere in Britain, 
defence and process control, -with the possible exception of 
where a computer must respond the joint effort by British 


■ “Tb.e' -btus to the 

V ^ /someone 


The report surveyed H 
British companies employing 
4.400 people to write real-time 
software. It contrasted their 
fragmented structure with the 


Telecom and 
tions: manufacturers 
System X Britain'; 
electronic telephone 


^ ect sorted yesterday with' the- educational hrr-i-ni.Vir.ii ^' l| - :> -■» 
could 08 U 2 @d in 2 wid8 rsngc trsnsmisRinn nf ^ ~ WgSfliSBffijJHt ■■ ■ .At- . stlfiofi- 'A TiWHcK p rtfi 

of anoHcations. if alters ^ ^ a .’ A corrtopondeube cotln»;,qn ; - 


mu' . i . •; -AW-.xteiprnirjiam - 

^ ^ 

able of being conneet^fo^morB. wa§ .&mae fitfftil'^eerang. ‘‘rtib 
peripherals and prfpn#m?v£nrn v train. < wa<d\lieabiiT» » n ^^ - 


thoughBritain had considerable , port programmes for research ^teation in Japan, where one 


expertise in this type of pro- 
gramming, the industry’s de- 
velopment was hindered by 
inadequate investment, unneces- 
sary duplication of effort and 


and development. 

; The public sector accounts for 
more than half the British mar- 
ket for real-time software. 
Real-time software provides a 


company — Toshiba — has set 
up a software factory employing 
2,000 people. 

If said co-ordinated . invest- . 
ment on this scale was not being 


produced in Britain was tailor- 
made to suit individual custo- 
mers. The.. resulting systems 
were often so specialised that 
they- could not be adapted to a 
wider market and the experi- 
ence gained in developing them 
was effectively lpst. 

Britain must expand rapidly 
into foe development of “stan- 


and 70 per cent of its standard 
software was imported from the. 
U.S. 

The report . criticises the 
Ministry of Defence, a major 
real-time softtyear purchaser, 
for not doing more to help 
suppliers. 

Jason Crisp writes: The BBC's 
major "computer literacy” pro- 


wide range of organisations 
from government . bodies, to 
small private companies. 

The BBC is .selling its own 
microcomputer, . publishing --a. 
general book on. computers, pub- 
lishing Its own computer 
Programs and providing a con- 
tact service to put people in 
touch with computer chfos and 


- was. bhtofo&y wann. 

more powerful . ma chin e 


K7 


n 



«35 

Set for visual display* and are ’ 

made by ■ Acorn eomjmtere, ,*o«e fpowrti^tgfe-'the' R|b& ■ 

g^Lat iiig fof t w^re. 

EUrton. ; ■ IP-.- 


UK: a Surrey and 
for action j 




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The 2099 is equally 
■v . .. good at handling every other 
accounting; problem. 

So, if you're tired of twisting debtors: 
arms, just fill out the coupon. 


ToV&Ierie Belfei; British Olivetti Ltd., Olivetti House, 
i po Box 89, 86-88 Upper Richmond Road, 
j London SW152UR. 

1 Name — — : 

▼ 

.Company — : — - — - - — 


Address. 


he couldn't find 


number of the 
accounts .. 


invoice, order and 
removes 


TeL — - 

Olivetti 

BUSINESS SY5TEMS 








m 


Financial! limes Tuesday January. 12 1982 



Prudent and Assertive 


■sSjr* 



Republic New York is a singular sort of bank. 

Our policy of assertive growth has helped make us the 29th 
largest bank in the country. 

Yet Republic New York has always pursued a policy of pru- 
dence. Our capital-to-deposits ratio and capital-to-Ioans ratio 
are among the best in banking. 

For further examination of our performance, you may wish, 
to see our latest annual report Of course, it won't explain our 
singularity — how we manage to be so assertive and successful 
in building assets, and so prudent in managin g them. 

For that you may wish to meet us in person. Call or write 
Richard Lazarus, Senior Vice President, Republic National Bank 
of New York, 452 Fifth Avenue, N.Y, N.Y 10018, (212) 930-6000. 


Republic National Bank 
of New York 


MsmborFecferal Reserve SyUarrVFDJC 


UK NEW- 


No more offers, coalminers told 


BY CHRISTIAN TYLER, LABOUR EDITOR 


'THE MINERS were warned by 
the National Coal Board yester- 
day that there will be no further 
wage offer if they reject the 
present one in their ballot later 
this week 

Members of the Board were 
deployed to Scotland, Stafford- 
shire and Nottingham, to try to 
counteract the. message being 
put out by leaders of. the 
National Union of Mineworkers. 
rile leaders are asking their 
250,000 members to reject the 
9J3 per cent offer and deliver 
a mandate for- a national strike 
if necessary. : , 

In virtually identical 
language, the directors said that 
even a vote for strike action 


would not produce more cash. 
: The NGM has been saying that 
the threat of industrial' action 
will be enough to fbree an 
increase from the board or tbe 
Government . 

The XCB campaign is being 
conducted by Sir Derek. Ezra— 
his last negotiations with the 
NUM before his retirement this 
summer. He and the board have 
been encouraged by reports 
fro m the coalfields that there 
is no “head of steam” behind 
the NUM pay claim for a rise 
equivalent to 24 per cent 

Sir Derek said in I^mdnn that 
the board had reached the 
limit of what it could pay and 
that any further wage rise would 


Tn *»»n lost customers and there * 
fore lost jobs. Tim industry's 
investment programme would 
also be reduced. 

“The board is not prepared to 
take these steps and cannot 
offer any more money-even -if 
faced with a strike teat,* he 
'said.' Mr Nigel Lawson, me 
Energy Secretary, speaSang at 
the same function— a luncheon 
of the Coal Industry Society— 
reinforced Sir Derek’s warning 
in. a more oblique fashion. . 

Mr Lawson said he would 
soon be introducing new legis- 
lation to increase the board's 
external finanefag font andthe 
minds should pause to consider 
whether they wanted to woric 


in an. expanding industry or one 
-which was stagnant' or even 
-declining and pricing itself out 
of markets. 

.Most of the NG3Ts area dele- 
gates have voted to reject the 
board’s offer and have been 
ffprojurigTyang far support In the 
ballot that wiS be beM from 
'tomorrow . mrfH Friday, 
One constituency, of the union, 
the Staffoird^Mrehaaed power 
group which has 6,000 crafts- 
man. members, voted to accept 

MiTrtatite admit that it wifi 
be difficult to win the 55 per 
cent majority needed to give 
the muon authority to . call a 
national strike, but are still 
r pnflA»n.t of doing so. - 


Union poll forgery alleged 


financial TIMES REPORTER 


SOME BALLOT papers in an 
election for general secretary 
of the Boilermakers’ Union were 
forged, it was alleged in the 
High Court in London yester- 
day. 

Urdon district official Mr 
Barry Williams, who makes the 
allegation, also claims some 
other votes were . wrongly 
allowed or wrongly disallowed 
by the union’s executive. 

Mr Williams challenges the 
validity of the 1980 election 
in which Mr James Murray, 
of Newcastle-upon-Tyne, was 
declared the winner after the 
count of votes had twice been 
revised following protests. 

Mr Williams Tnaintaing the 
voting results and returns Were 
sufficient to give him a majority 
over Mr Murray and entitle him 
to be declared elected general 


secretary. ' 

The union — the Amalgamated 
Society of Boilermakers, Ship- 
wrights, Blacksmiths and Struc- 
tural Workers — and Mr Murray 
deny the allegation of forged 
papers and contest the other 
dafrns by Mr Williams. . . . 

David Tumer-Samuefe, . .QG, 
far Mr WBliams, said he . was 
“ making an allegation that 
ballot papers were forged .by or 
far Belfast No. 1 Branch.” . 

Mr Justice Dillon is bring 
asked- to rule either that Mr 
-Willi ams won the election or 
to declare it null and void 
because of alleged irregularities. 

Mr Williams claims the execu- 
tive included votes from certain 
branches when they should have 
been excluded through breach 
of union election rules. 

He also complains certain 


votes were allowed and. others 
disallowed contrary to union 
rules. 

Mr Turner-Sanmels said Mr 
Williams would, if necessary, 
also incite the judge to say that 
the union acted "arbitrarily and, 
with bias and partiality.” 

He said it had emerged that 
sop!Le : br^nches had not sent bal- 
lot papers in.jfdlh-theHr voting 
r etur n -forms. This, meant the 
executive could, not ‘carry out a 
spot check on the' accuracy nf. 
the - voting-re turns.- 
" '“This must be an especially 
.. .important . matter .. .when. . . an 
election is close-run,” he said. 

The union contends that 
ballot papers were available for 
inspection by -Mr Williams when 
he appealed to the general 
council The hearing continues. 


ntbal- ZZI* 
voting' ae 


Water pay deal doubts grow 


BY PHRJP BASSETT, LABOUR-STAFF 


WATER AUTHORITIES faced 
farther . doubts . .yesterday 
whether their 9-1 per cent pay 
offer would be accepted by 
32,000 manual workers When 
water workers in the Transport 
and General Workers’ Union 
voted by nearly 2-1 to reject it, 
But water workers in the 
agricultural workers’ iminn, 
which claims' about 1,000 mem- 
bers in tiie industry, voted by 
about 3-2 to accept the offer on 
a low poll of about 350 returns. 

Technically, the farmworkers' 
vote should tip the overall trade 
union side position in favour of 
acceptance. The industry’s 


largest union, the General and 
Municipal Workers’, has shown 
a majority in favour, while the 
second largest, the National 
Union of Public Employees, has 
rejected it. 


The voting allocation on the 
trade union side is: GMWU (10 
seats). Nape (6), TGWU (3) 
and the agricultural workers 
(1). On present overall posi- 
tions, this should give an 11-0 
majority in favour of accept- 
ance. 


Efforts were being .made 
yesterday to arrange an early 
meeting, of the union : side. 


probably tills week. 

The GMWU represents about 
two- thirds of the industry’s 
- workforce, but its own vote 
was split, with only about 55 
per cent in favour. Three large 
regions aH rejected -the' offer, 
and the suggestion was -raised 
yesterday of their notvoting in 
line with the overaH GMWU 
position. 

If that happened, and three 
of the union’s 10 votes swung 
against acceptance, it - could 
leave the union side not with 
a majority in favour of 12-3 but ■ 
perhaps with a' majority to 
reject of 12-8. • ; 


Lorry men 


give strike 
ultimatum 


By Brian Groom, Labour Staff 


SHOP STEWARDS repre- 
senting about 15,000 London 
and South-Eastern lorry 
drivers In the jwfaa to Stre - 
ami-reward sector have threat- 
-eued-tor strike from Jammy 
25 If employers do not raise 
their 43 per cent pay dfafr. 

- Elsewhere,- settlements are 
beginning to~ emerger in 21 
regional negotiations at about 
S-7 per -eent_ Deals - of 65 
per cent in Kent, £2 per cent 
in NerOi Humberside, and .7 
per cent in the East Mid la n ds 
have been reached. * 


London and SonthEastem 
employers in the Road 
T foyiiagiB Association’s metro- 
politan area committee , who 
meet tomorrow would have 
great difficulty In raising thrir 
offer. This has been pre- 
sented as a maximum figure 
v .based on a survey of what 
' members could afford*. ' 

■ The offer would raise tiie 
40-honr minimum far driven 
of the largest vehicles by & 
to £85 a week: With a 
guaranteed five hours? over- 
* time this would become £20L 
The RHA’s North Humber- 
side deal raises the 4Wtour 
-minimum -for the ' highest 
category by £5 to £86, The 
guaranteed week is increased 
.from 42 to 45 hours. 

- ThexK ent Hauliers Pedera- 
tion deal ra&es the -46-hour 
minimum from £80 to £85-80. 

- Hard-hit haulage companies 
are trying to achieve a second 
year of low - settlements. 


APPOINTMENTS 


EXETER TRUST LIMITED 


Director 


This notably successful private •financial institution located in 
the West Cbtmliy intends to appoint a further senior Director as 
part of the plaafbr future succession. 


• RESPONSEBnJiYto the Managing Director covers all aspects of 
tie b u s ine ss with, emphasis initially on. marketing loan Polities 
for small and medium size businesses throughout the United 
Kingdom. There is also scope for developing a wider range of 
financial services; 


■ experience in financial marketing and a successful record in 
* 2 “ t “ -*— 1 ? ^ m ost ap pro- 


• salary is for discosaon with. ^£18,000 jxa. as an Wkatac 
Age bracket 40/50. 


TOfee in complete confidence 
to GLTCIHms as adviser to the institution. 


TYZACK & PARTNERS LTD 


MANAGEMENT CONStrKCANTS 

- xo HAT JAM STREET LONDON WIN 6DJ 


Corporate 

Finance 



Polish row hits TUC 


MerchantBankiiig 

Corporate Finance 


; Hill Samuel and Co. L imited’s corporate finance 
business continues to expand. We now need to appoint a 
few key young executives in this area. 

Applicants, aged 24-30, wfll be graduates andhave 
qualified first time in accountancy or have a b usine ss 
school degree Successful applicants must be . 
commercially minded and be able to egress iheir 
thoughts dearly and concisely. Preference will be given to 
those who have had atleast one year's post qualification 
experience in any demanding field relevant to the 
corporate finan ce business, particularly investigations, 
rights issues or acquisitions and mergers. 

Fluency in a second language would be an added 
advantage. 

Please write, in confidence, withfuH career details to: 

H. C. G. Gardner, Director of Personnel, 

HH1 Samuel and Co. Limited, 

100 Wood Street, London EC2P2AJ. 


HILL SAMUEL & CO LIMITED 


links with E. Germany 


BY CHRISTIAN TYLER, LABOUR EDITOR 




THE FIRST of a rift be- 
tween tbe British and East 
European, trade union mpve- T 
merits over Poland emerged 
yesterday. 

The TOC’s international com- 
mittee decided to break biff 
diplomatic relations— exchange 
visits an dother contacts— with * 
the East German trade' union 
centre FDGB. It will be advising 
affiliated unions Of its decision. 

The TTKTs decision' followed " 
a .message from toe ; FDGB 
which rebutted in- angry terms 
the TUCs call to East -Euro- 
pean unions to put pressure on 
the Polish authorities -to free 
imprisoned tirade unionists and' 
restore civilian rule. 

The only other East, Euro-, 
pean trade Union centre to * 
reiply so far is the SZOT to 


Hungary. Accenting to the . TUC 
this organisation had showed 
- “some measure of understand- 
ing” of fiie concern expressed 
by the* British trade : ifafrm 
'movement; ; / 

Meanwhile a 'European; TUC 
request far visas so toatsenior 
officials, ' -including Mr Len 
Murray o£ the ■ TU<V could visit 
Poland has been turned down. 
The TUC said the authorities 
had said- such a visit would not 
be appropriate . while martial 
law continued. . 

.In its reply ta the TUG. -the 
East German federatian.8aid.it 
rejected the TUCs view of 
events in Poland.. The mafictazy 
takeo ver bad saved the country 
from ‘‘chaos and xnih” '..and 
made possible a return- .to a 
normal Situation. - - - 


Insurance pay 
action called 


By Our Labour . Staff 


COMPANY NOTICES 


European dvohtaky receipts 
■tqMW&tiaa C o mm on Stock of 
KUBOTA LIMITED 


A distribution of SO JOS per depositary 
share leu spy applicable taxes wHI be 
Myabl* on and alter December 3T, 
TSBl Bpon prqent afl wi el coupon 
W * *“ 

“spsaar « 

—Jew Yorlfc so West Broadway 

— frMds. 33 ! avenue daa Arte 
— London. T Angel Court 
— Parb.14 Place VondAmo 

-lokfort, s Bocfcmhrimer 


■ We can offer you, as a member of a small professional team, ferthertraining and 
widening of you r experience in mergers, fund-raising and other matters affecting 
corporate strategy and structure both in the United Kingdom and internationally. 

. You win meet, at senior level, executives of a wide range of companies, nationalised 
industries and government agencies. 

You should be aged 25-28, have a good degree, and in addition be a solicitor, 
chartered accountant or have worked for at least three years in the Corporate 
Finance Department of a bankor leading multi-national company. Remuneration 
will be highly competitive. 

Applicants should write, in confidence, to: 

The Personnel Director, 

NM. Rothschild & Sons Limited, 

New Court St Swftfa'rfs Lanet 
London E04P4DU 

giving full details of toeir careerto data 


— KREOIETBANK LA. Luxem. 

LSSSSk 43 Ro ^- 

W.Z8S (after «, 

BOX Japaneee lritfahofaHnp tax) 


NOTICE Oft PURCHASE 
EUROPEAN INVESTMENT BANK 


ftV% STERLING rUi DOLLAR BONDS 
PAYABLE OF 1377 
DUE DECEMBER IS. 19S2 


1 


'i: 


Puramt to toe terms and condltoMs 
of Mo Lorp. - node# is hmby 
Bomfflokleri tost during ttcwtlmt mS 
MdlM PKPmbsr 14. ISairtl^l.DOO 

As of D*e*mb*t IE, 1DBI, tbe principal 
■mount of such Bonds remaining io 
drnMon mg£21 400.000. “ 

EUROPEAN INVESTMENT BANK 
junry 12 , 1902. 


THE VmJkOiME KUNDATION 
LIMITED 


N.M. Rothschild & Sons Limited 


O* BMKHO Bonds 1B87 
The annual report and acco unts of Thr 
WefTcom* Poondnlon Umtted id?- tE 
Mancfail Year ended 29to Amoat iaai 
Mill be anflibie tor insoMan «e 
o«ces of, Messrs Sbnhter and Mw, 3$ 
Bastedhall Str*«. London EC2V SOB do£ 
ins toe usual business hours on any 
drr (S*tnrd*v emepted) ontll February 
IZto 1NL 


PERSONAL 


IN LIVING 
MEMORY 


floral trlbuiM fads. Your regard for 
d departed friend lives on IF you 
mo ho a donation In their name to 
Help tha Aged's work — towards a 
Day Centre for the lonely, medical 
treatment or research Jor the eld 
or help for the housebound. Every 
£ achieves e great deal for the old 
PJeasa let us know the name you 
wish to commemorate^ 


Smdto: ~ 


The Hon. Treasurer, The Rt Hon. 
Lord Maybrsy-Kinn, Help the Aged 

" Room FT1NM, 3S Dover Street ■ 

London WTA2AP 


ART GALLERIES 


MAWAF GALLERY, 32 Motcomb Street: 
London. SWl. Tel. 23S OOIO. SpeclalES 

tSrn^ A&A.^ Wmow «Wnj- 


WHITECMAPIL ART GALLERY, Whi£. 
UuDel High St. 337 0107.. rime AMom 


F HCOLA .JACOBS GALLERY, 1 cSC 
London. W. Tel: 437 38GB 
SMALL- WORK by seleeted British ei* 
American artiste. Until 14 January. 


WILPE MSTEIN: Henry Mocre-^R^i 
London, wi. Extended to 22 Janua^I 


THEATRES 


,324 S334. Prom 29th Dec. 
-Family Musical YountE A GOOD man 
CHARLIE BROWN. 


VAUDEVILLE. CC 01-830 9988. Eves 
8. Wed Mats 2 AS. Sates & &7 gordon 

caw**™ !Sut^ViI HA 
SAJ®S ON, THE TABLE. SORRY. No 


- 5Si ' b “ 


VICTORIA. PALACE. CC 01-828 47SS4 

aa-ajaaf ■» °’-=» 


THE ASSOCIATION of.. Pro- 
fessfonal. Executive, Clerical 
and Computer Staff is aridng 
its members at General 
Accident insurance, company 
to begin an overtime ban 
work-to-rule against, a 73 per 
ceid: basic pay offer. ' 

Apex claims to - repres en t 
about WOO of the 10,500 staff. 
Negotiators of the Assoaaf 
of the Associ a tion. of Sdeff- 
tific, Technical and Mans. 
gezlal Staffs, which' dafans to 
represent 5,500,. have= reeoiif. - 
mended rejection of the. 
offer. ASTBFs General Aed-; . 
Oent executive meets today.' 


Tees dockers 
reject 9.5% 


By Brian . Groom, Labour Staff 


HOPES are . rising that toe ten 
months of 4ssjHites'at the Port 
of; Souttiampton' are reaebtog 
an end. ;Bat at TeesDoAiin 
toe north-east, .950 dockers -are 
In toe. ninth week Of a /strike, 

, after rejecting a new- ray 
-productivity . offer.;' 

J-A mass- meeting- of toe Tees 
Doric men -. rejected a- ff5 per 
,cent itaritoge. at toe weekend. 

-At Southampton, toe dispute 
between toe British Transport 
Decks' Board - and 150 c^go 
checkers- teas' reduced ^working 
hosiis to' Monday to Friday day* 
tofft. on ly; siriqe -Octebbc 28* Bat 
toe. area:, ^tnovf 

bjea; redneed to ■ toe batodate 
an. itew 

toifl;4«tteras. ;> . r- 


VTCTORIA- PALACE* THFATRp" 

March 11 --U Sttedsworirpr^^ 
Marsh- S- 1 Q. ELmSEnkTAYLORte 
JK, 1 *™ POXH hyjLfljUAN hkllH 
Sox Office Open 01-834 
'■rTTMiii'i 0, ‘ te8 ‘ 4KU ' a ” PWI* -emu 


warqioUSE, Donmar .Theatre, Eirtham 
5*t.aN«nt Gdp. Offitef 836^6808. 


MPs act on SesdSuk row 

BY IVO DAWNAY, XABOUR STAFF. *-.’ 4 Jy = 






fE'.. 


5' 





4* 


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‘Ru dkin (mar 'Be hit not nibble ter 
younger cbUdra n) li-16 Jam war? 

nuynudinfl -of-AUNT MARY,- new play 
or nn\ MinS« 


^TMIWTOL CC S 01-8 34 0283. 
GAVIN AND THE MONSTER. A fantasy 
* d J*? n “rp janlaL UnaLJao 25. Moe-Sat 
f| 1 ar Sit 6-45. • 


^EJTHIEE, by- 4200 Sedink 
UK-offitets pantinned tobatt-rfd 
by the. Britiste- Hail 
1 g *^toary- yekterday.v'as 
KPs demanded ‘action. 
«n»a toe conjpaix?. 


■ Bos -off. t»| 01-B39 - C97*. 

riUliriHMrocL^-™ 68931 


52-930 8012-77-65. _ 

6®M. Grow sale s tel 01-379 -6061. 
JJWWffiH'* latest , farce ANYONE FOR 


DMUSJ by JOHN WoiS. 

CLEMENT. MON-SAT EVES 8.15 


DICK 

Am. MAT SAT 5.00 pbl- 


y^NDNAM-S. j 5 83fi 3020. CC 379 
6SR5 l Grp rcdpgBen* 836 3962. .COLIN 


fc*W MT. ROSEMARY rNATOT'K 
ARTHUR MILLER'S AU J 


JMY SONS. 


Directed MICHAEL. BLAKEKIORE. 


: ■ 5,4 .4J0 .®..8^}p. Wad 

"11C 2«3Q. 


Mr 15m Ratiftbne, Tory - HP 

fate 

Boswwto;- Sea- 
ls’ toatoman,: foHowing,: a 
vfcdtto toe 5^90-txm- Sei*5 at 

f w officera and jratinss are 

-redundancy notices 


fW«fceri(»>. .928 6363. Eves 

“8EBOOIC From Toer I90i 

AINU LEAR. 




rente was somewhat hasty! He 


to .'provSifi firrance for : toe‘ sea- 
oter- ttee bbs&«ss. 
Mr Jim Spicex, ; Tory MP f nr 
Dorset-West^ has -eaaressgd-Ws 

conwn, to Mr 

toeire^ortafinister,. over the 

. gputhamptoife ltt*cn and Sbdal 
Democratic. ^arty r s hippin g 
q>ok^nan,^ had asked- toe ■ 
: Government; to' argg f ftMufi* fa 
enter frah^ tate with th® ret- 
men over its' firtnre^ana': : 

•• t» v Wet 5 

Met^jantNavy 
-and AirHne-Of&eenr-Assooation 
and, of tbe .National Union of ‘ 

Seamen today r ; . ‘ .r - - • "i- 




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EDITED BY ALAN CANE 


stry in the 20th century 


modern dentistry 
. -at the use of compaters 
tiie ^&it to the dentist* s chair 


HAVmg.TA^^^ir ' -.teefe 
renKTred 

it was jyaiB ' 

flgD. '-• 'L' -_ -Vi r" &r '■» £ - j. 

The’ prevent. 

Cental" jtttiWEgps = to: ;&ter life. 
Tty. cd«rasl^d^ ^ftwttion -. of 
* decayed .^Eot^f^ast ^I hope . 
— is re^i^fti/:^ctey las one of 
me’^ nwppr-ra&g^ j. 

■ To: . ooes; tt&tzS&e :. i TRtoSic , 5 
reluctiuKte :ttr*pailr « teeth- 
b rougitt-aboiit byj better .generaL 
health ■OD^i ^deBtlste " have 
evolved - . ,sppKstie^ted .’ -tech- 
niquesf \ ;for , ' flfitog ’ - awkward 


holes, : Mastering over the 
cracks and- jebnBding. . teeto 
from stumps.; 

‘.Electronics ace' jradualli 
appearing in .- the ■ dentist’s 
Surgery in the guise of speed 

controls for'- drifts,, ultrasonics 

for .removing hardened Sayers 
’ ot tooth-destroying plaque, and 
meters which V-dnot 7 lie 
dentist’s progress ;tfereutfi the 
tooth, dating -delicate , root and 
nerve irea tiutenfe. ". 7. 

-.-.- Computers .are, beginning to 
play a part in the surgery with 
electronic record keeping 
. which can he eaSed onto a teLe-. 



Induma ‘blows-up’ 
its turret mill 

BY MAX COMMANDER - . . 


ALTHOUGH. well known for 
their flexibility in most 
macfrinh shops, turret mills • 
do not readily * blow up to 
larger version*. The majority 
ctf tools tend to be ta the one 
to four horse. 1 power range. 1"' 

■ Indmna. believes it kas v 
solved the problem with Its 
19(8 model,* 7.5 ftp tool with. i 
infinitely varhbl^; speeds in 
the 40 to^ LOefrrtojFniin range. ,: - 

The TNEff mover toe Y-axis -. 
from the bee ioiifletop of 
the eotannr ' thereby ; giving , 
only X axis irevc? and vertical 
travel attoe fame. - Th e -t ur ret . 
head Is caMedym the 'end of : 
a ram to generafo iY axis i- ; 

■ noraneti: A-; <i 

Thor e iimpi ag- rfafo* niM ; 
this maKes emEeeTor- thefr -.: 
taWe top fccott^' 


moddCa - foods iqv to SOOkr, 
UfcelytobeeoeoMrteredwheii 
the extended traverses are 
tafcw» |w>a aceonitt - ■ 

:* The tool has l,00(hnm of 
travel an the longftndlnal 
axis and 500mm. on the cross 
and vertical axes. The latter 
are powered by dc drives 
providhig. hwgffndinal and 
exons feed rates of 10 to 
; XOOOmm/ndB feed rates with 
- n five to t,000mm/niin verti- 
cal feed. :, 

.- The t ur ret head has a 
T28mm diameter qnffl wflh 
1 40mm rf tnwghuanal travel. 
• . The fesdnma nogs is avail- 
Me hcL.the UK Ihron^i KK 
. Xhternafionul Ufa***” Tools, 
J^tzopa. ISadJrg EsteiCe, 
Fraoer " Rond, Erfth, Kent 
;fErWr47eiD. 




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• ' . • $r-\ v >< 

■ • • z. W$ 

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1XZXSS, 


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vision screen whSe the patient 
Is being treated, hot they also 
have a .role in controlling drills 
and other equipment in the 
dentist's hand. 

This is shown by Siemen’s 
Studio 3000 which allows infor- 
mation about a patient: to be 
updated during a check-up. It 
keeps lists of appointments and 
accounts. 

Only 2 to 3 per cent ot 
Britain’s 20,000 -dentists have 
computers in their surgeries 
because . only the larger 
practices can afford them. With 
an average annual salary of 
- about £14,000 most dentists 
choose more basic equipment 

This -means mat the OK 
tends to miss out on the most 
sophisticated equipment at a 
time when more people are. 
needing complex treatment to, 
save their teeth. * 

Professor Keith Mortimer, . 
head of conservative dentistry 
at the Royal Dental Hospital in 
London said: “Because dentistry 
is becoming more complicated 
patients will, spend up to an 
hour in . tire dentist’s chair com- 
. pared with 15 to 20 minutes 
previously” 

Today, about 22 per cent of 
money spent on dentistry under 
the Health Service goes towards 
advanced treatments such as 
saving roots, inserting crowns 
and' inlays compared with only 
IB per cent in 1953. 

Brofessor Mortimer says that 
"the ordeal of a prolonged visit 
to the dentist has been made 
bearable by several innovations 


General Denial Service 



An ' electro jmeti^iicaDy 
operated glue , gun, said to be 
ideal for 'high TOltune assembly 
and capable of bonding aim®* 
any material within seconds b® 
been introduced by BeA Fast#*- 


1978 1380 -851 


and a change in dental practice 
in the past 10 to 15 years. 

‘‘Equipment has been stream- 
lined, high speed air turbine 
drills cut through tooth enamel 
more quickly, and X-ray 
machines which can photograph 
the whole mouth with one 
photograph, give dentists a 
better picture of what’s going 
on,” be said. 

Professor Mortimer pin- 
pointed the introduction of 
water-coed ed air turbine drills 
— rotating up to half a million 
times a second-— as the greatest 
advance In the past ten years in 
the equipment field. 

The new drills replaced ones 
which were ten times slower. 
These drills tended to vibrate 
causing an unpleasant shudder- 
ing sensation, apart from their 
slowness in drilling through the 
tooth. 

With toe new equipment has 
come changes in dentil prac- 
tice with greater participation 
by the nurse whose previous 
role confined to mixing fillings 
and sterilising equipment. 


Dentists now sit, instead of 
standing over, their patients 
which has resulted in smaller 
and more streamlined equip- 
ment 

Coining to the market are the 
tiny optic fibres near the drill 
bit to illuminate the cavity as 
it is drilled. These are already 
available in the U.S. and now 
in the UK ' 

Outside the equipment field, 
researchers at Gay’s Hospital 
are trying to develop, a safe 
vaccine which could prevent 
caries — tooth decay caused by 
lack of Vitamin D and calcium 
salts which is prevalent in 
children. 

However, the UK market for 
dental -equipment is stagnant at 
about £60m and 'dominated by 
overseas companies such as 
Siemens, Kavo and Ritter in 
West Germany and- American 
MidWest, AD International, 
part of the Dentsply group, and 
SS White in tile U.S. 

The few remaining British 
manufacturers include Nesor 
Equipment, Tridac Dental 
Equipment and the Wright 
Dental group. 

The longer people keep their 
teeth, the more dentists will be 
needed which may eventually 
stimulate the UK equipment 
market, if the Government 
allows more places in dental 
schools. 

Today, dentists care for 690m 
teeth still attached to adults. 
In 40 years’ tone they will have 
to meet toe challenge of more 
than l.lbh teeth. 


Compact fibre optic 
transmitters launched 


BY GEOFFREY CHARUSH 


COMPACT FIBRE optic trans- 
mitters and receivers that can 
deal simultaneously with digi- 
tal signals up to two megabits/ 
sec and analogue signals over 
the 10 Hz to L0 MHz range 
have been put on the market by 
Burr Brown International 
(0923 33837). 

Designated FOT110 and 
FOR110 respectively, these units 
con tain all toe necessary circuits 
to form a communications link 
of up L7 km using silica 
cables, or 100 metres with, 
plastic fibres. 

Also available is an infra-red 
option for the transmitter which 
permits Hnk lengths of up to 
7km. using the standard 
receiver. 

As far as digital signals are 
concerned toe new units, which 
are housed in- 32 pin dual-in-line 


packages, can be used without 
any additional components. 

Although most applications 
win be either digital or ana- 
logue, toe FOT110. is unusual 
in that it can transmit an ampli- 
tude modulated signal simul- 
taneously with TTL signals 
over toe same cable. 

Signal input voltage modu- 
lates toe brightness of the light 
emitting diode— 1.1 volts peak- 
to-peak gives 100 per cent 
modulation. Transmitter output 
can be .turned down to avoid 
saturating toe receiver in short 
links. • 

The receiver is a hybrid ! 
device that offers a TTL level 
digital output and an analogue 
output Signals are converted 
by a photodiode and amplified 
to provide the analogue signal 
while toe TTL output is 
achieved using comparators. 


Better workstation performance 


AN IMPROVED raster graphics 
workstation is now available 
from Gerber Systems Tech- 
nology for use in conjunction 
with -the company's IDS-80 
computer-added - design/mamt- 
factoring equipment 
In corporating an independent 
HP1000E computer With 256k of 
high performance memory, the 
unit 5s claimed to offer “ signi- 
ficant improvements ” in 


muitiworkstatlon performance 
compared with more convert- 
tdonaJ systems. 

Distributed processing tech- 
niques have allowed toe com- 
pany to offer “ extremely fast " 
rates of screen updating. The 
now workstation also has 
powerful screen dynamics, 
erase and rapid scanning/ 
zoosmug features. 

More on 0932 55951. 


The good hews is 

FFRKAMl 

Selling technology 


All weather 

Nite 

Lynx 

LOW LIGHT television cameras 
that can “ see ” in lighting 
conditions that the human eye 
perceives as virtual darkness 
have been available tor some 15 
years and have beep progres- 
sively improved, particularly in 
terms of their stability. 

Now, Philips Business Systems 
is offering a system called Nite 
T.ymr which can deal with a 
range of lighting levels claimed 
to be “ far an excess of previous 
generations of low light camera . 
systems.” 

The automatic control system-, 
of the camera allows it to ; 
operate in all weather condi- : 
tions from bright sunlight to 
well below starlight standard. 

The result is a system that 
wiQ meet the increasng need for 
year round, 24-bour surveillance 
in industrial, police and mili- 
tary applications. In particular, 
Nite Lynx eliminates the need 
for night time exterior flood- 
lighting. reducing electricity 
bills. The camera has all the 
usual remote control and 
weatherproofing facilities. More 
on 0223 245191. 


Ill 






wwm 






V: f;* r < * v > 

i $m, > Is * 




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The difficulties involved in buying a Anc 7 iTecause^uie a businessmaiv AntoonsedDi^om^D^^ 

. i» 1 T_ l _ A.C.TACaanaias)Uid, CHAGroup, 


r SU0J3MG SOCSTY 
ftWES. 

Every Saturday tbe • 
Rnxnciii Uiues poblahes * 

' table- - elvraff ~ datails of 
: BUJUXNG SOCIETY RATES 
on offer to -to* public ... 
For fuitoer details ptease ring 
01-M34M»toEb 3C06 . 


ing Systems of Bercriey, North 
Humfcerside. 

A 400 watt heater gives a 
^arm-up tiiue of three to four 
minutes and toe gun Is able to 
deliver up to 5i5 kgs. of hotmelt 
per hour. Afflreswa is -provided 
rin 70 -gramme 43' mm diameter 
cartridges with a reserve cart- 
ridge in toe gun prior to 
reloading. 

Operation is at 50-100 pri, toe 
sun wiH dispense ail Flo-Fix 
adhesives and can he used at 
any angle. A feature, toe com- 
pany fhunis, is a solid state 
variable temperature co ntroll er 
to contain the gun temperature 
to within 5 deg C af the 
selected setting. 

-Full details about toe AH4Q0 

fr n m MSS 861075. 


to send most busmessmenrunnmg dhck to /unnuuncuL/iDu^uu^ j *1 

thar offices to tackle something simple like with technical jargoa On the contrary you il 
the last six months' taxrefcums. . be surprised how much they'll know about 

But now thanks to Digital, the vvodds your business and ^espea&c problems^ . 

leading manufecturer of miniccmputers, it's involves. So they llbe ableto explamjust wha t 
to haraerthmbttyinga typewrite: a Digital computer can do for yoi^ in terms 

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ACT (Computers) Lid, 

III HagleyRoad ccigpasioiv 
Birmingham 316 SiU. * 
1^:021-4348555. 

Alveromc C om pu te r Systems Ltd, 
Alveronic House, 

Ryder Avenue. HuO HU5 lQQ. 
TkL04S24i546L 

Api^iad Computer Systems lid, 
VCarwickgate House, 

tthrtvrdc Road dd HaSard, 
Manchester Mi&CCQ. 

Tel: 061-572 S5ZL 

ArbaffUJOLicL 
160 Queen Victoria Street, 
London EC-JV iDA 
Tel: 01-24S 6499. 


CHA Group, 

1.2 &3 Angel Coarf^ 

Market tiarboiough. T j<*?r t i.lEI69QK. 
Tel: C655 63902. 

Hoskyns SystemsDestoipinentlid, 
Africa House. 64-73 Kin^way, 
London IVC2363G. 
l&01-2i2195L 

Managem erf Control SysaBBift 
3 V^TJisfaxvGrtr.a 
Fallowfidd Manchester WU6XC. 
Tel: 061-245 7100. 

Online Computing Ud, 

Marino House. ?3 GalsihulftRcai 
Sandycove Co. Dublin. 

Td: Dublin SCOild 


{ ToTeresa Gubbin, Digital Equipment Co. Limited, Digital Parlcr 
Imperial Way, Reading RG2 0TR. Td: Reading{0754) 86S7U. 
i Please send mevourneiv brochure 'ASlraiegyforBuyinga 



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Small Business Computer? 

Name 

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Company; — - 

Application Area: 


FTl/12 


^and^urneeck Computef 

Come and see ns on Stand 461 at die "Which Computer" show- 


We change the way the world thinks. 











" Financial Times Tuesday' January 12 1882 


THE MANAGEMENT PAGE 


EDITED BY CHRISTOPHER LORENZ 


say ‘yes’ rather than ‘no’ 

The third in a series on the UK banks’ fernces to smaller businessmen 


“I ONCE visited a very small 
company where X stood on my 
feet for three days. There was 
literally nowhere to sit 
down." 

Brian Davies would not 
suggest that this experience 
is typical, hot as the Lloyds 
Bank Business Advisory 
Service manager for the 
North West of England, he 
uses the story to show that 
hank managers do not Inst sit 
behind large desks in plnsfaly 
carpeted offices. 

A career banker who has 
come through the ranks since 
he joined the Lloyds' Neath 
branch in 1957, Davies is. 
now one of a 19-man team 
np and down the country 
which tries to help small firms 
overcome their financial prob- 
lems (see article below). In 
the last three years he has 
visited around 100 companies 
in his region. 

“ I believe the first priority 
is to cement a working rela- . 



Small Business 




tionship with the man run- 
ning the company,”, says 
Davies. “Most want ns to be 
there, bat some tend to be a 
bit suspicious at first. 

“I find that many of the 
people I meet are simply glad 
to have someone to talk to. 
They are obviously wary of 
rivals and seldom have an 
opportunity to talk t o the ir 
bank manager or accountant 
at a long stretch. It is am a zin g 
how they do open up.” 

But Davies Is not just there 
to “ What I try to find 


out is what the customer is try- 
ing to achieve. The answer is 
usually 1 profits,' but when it 
comes to, the 'how' and the , 
* when.* people become much- 
more vague." 

The biggest problem, ho 
says, is that many companies 
do not actually know their 
current trading position. 

“I can think of dozens that 
have had a got feeling that 
they are doing well, but this 
Is probably through just look- 
ing- at sales. If stocks are 
down, the position may not be 
as rosy as It seems. If you 
don’t know where yon are 
now; how can you plan 
ahead?" 

Davies often comes across 
businessmen who have already 
identified areas for improve- 
meed but have not acted on 
die Information. “ Some, 
moreover, identify the wrong 
areas. For example, one 1 
know mounted a, major attack 
on. overheads hot it turned 


out that as a proportion of 
sales these were not very 
significant Material -costs 
were much more important 
■r an A the .company should have 

- been 7 -looking for ways to 
reduce these." . 

Davies is obviously an 
enthu sia s tic advocate of the 
Lloyds Bank ■ Business 
Advisory Service. He feels the 
biggest benefit, is the 
improved aml^ rj ^aiiiWug of 
small businesses which BAS 
managers — and' branch 
managers through receiving 
the reports— have acquired 

- through visits. 

“As bankers we have got 
to learn more about our 
customers. ' Ton can’t just 
automatically say that you 
want to see the monthly stock 
lists, because that may be a 
totally inpractical request. 
This would certainly be true, 
for example, for an electrical 
wholesaler who stocks lots and 
lots of small items. He may 



A HISTORY OF ACCOUNTANCY 


When i 


to launch a 


Brian Daviess 
working relationship 


be able to do the check six- 
monthly, but that’s as tn n c h 
as you can. expect." 

Davies admits that he knows 
a Tot more now than when he 
started out as a BAS manager 
in 197S, and he implies that 
experience is the best 
training. 

“ In the past banks tended 
to look behind the figures to 
see why they couldn’t lend. 
Now we are getting behind the 
figures to see why we can." 


A late starter gains ground 


LLOYDS admits that it was a 
little slow to appreciate the 
needs of small and medium- 
sized firms — but over the past 
three years the bank has been 
making energetic efforts to gain 
ground, particularly through its 
Business Advisory Service 
(BAS). 

Helping companies run by 
people who are not financial 
specialists -is certainly the 
primary aim, but Lloyds also 
sees BAS as a useful means by 
which it can lure customers 
away from other banks. 

Set up in 2978 — three years 
after Barclays blazed the trail 
— Lloyds now employs one 
trained BAS manager in each 
of its 18 regions. 

The service can be used by 
any company with a turnover 
of between £100,000 and £10m 
and involves a basic assessment 
of past performance, present 
position and future plans. This 
is carried out by a BAS mana- 
ger, whose visit lasts about five 
days and results in a 10-12 page 
report, including an analysis of 
audited accounts, cash projec- 
tions for the next six or 12 
months, and some hints . on 


future investment The service 
is free to listing customers, 
though follow-up sessions cost 
a hefty £240 a day plus VAT. 

Companies which do 'not have 
an account with Lloyds may be 
charged for the original-visit 
but this will certainly be waived 
if the business'- subsequently 
decides to switch 'allegiance 
from one of the bank’s high 
street rivals. •' 

In 1980, for example' Lloyds 
conducted 99 BAS visits to non- 
customers. Of these 49 were 
“not attractive" tP the bank bat 
of 50 others, 32 ultimately 
moved their account -Lloyds 
claims £4m. of heir Holding as 
a result, the incame.fitmi Which 
helps offset the £800,000 a year 
it has been spending on the 
service. 4 - 

Comparisons with Barclays'] 
advisory scheme are inevitable 
■but, as both banks admit, there, 
are probably more similarities .’ 
than differences. .Being later* 
into the field, Lloyds' tally of 
2,600 reports is well below the 
Barclays total but the basic 
format is the saime. Until re- 
cently, Lloyds' has not shared 
Barclays’ enthusiasm for the 
“quickie" report which is 
carried out in a couple, of days. 


- The feet that Lloyds does not 
have as many other goodies 
marked “small business" as 
some of its rivals to put into the 
shop window, is not necessarily 
a .criticism, for the attitude, of 
individual branch managers 
towards their small business 
customer is more important 

AH the banks maintain that 
they are working bard to 
encourage a more imaginative 
attitude in lending, and Lloyds 
is no exception. 

Mike Blackburn, head of the 
BAS, explains that, tradition- 
ally, -managers have viewed 
small firm« as the “dirty” end 
of the market “Everybody loves 
to.' lend to an K3 or Unilever 
just as car salesmen prefer 'to 
sell a Rolls-Royce rather than 
a Ford Cortina. 


"" - o- w * 





. 


Mike Cfadkbum: learning the lesson that small companies wtU grow 


*' “About 95 per cent of com- 
panies in this country, however, 
have less than 200' employees 
.and . the lessen we are learning 
is that many qf these are going 
to grow. 

“Small customers take up 
management time and we re- 
alise that in the first coitple of 
years they may take up more 
of our management resources 
than a. larger and more 
established business.” 


Among its specific initiatives, 
Lloyds is particularly proud of 
its Asset Loans and Enterprise 
Loans, both introduced . in the 
middle of .1979 but since copied 
by rivals. The 'Asset Loan 
is for sums between £5,000 and 
£25,000 at fixed rates of interest 
up to five years. Enterprise 
Loans go up to £250,000 and 
can be repaid over 10 years. 

Lloyds has also been involved 
in providing money and 
speakers for workshops which 


the London-based Thames Poly- 
technic runs for people, inter- 
ested in starting their own 
business.. 

In addition, -Ihe bank has put 
up around £45,000 with Shell 
UK to pay for' back-up material 
and locql “events” following the 
forthcoming Yorkshire TV 
series “Be your own boss”. 


Previous articles in this' series 
were published on December IS 
(Barclays) and November 17 
(Midland). ' 


IN December 1848 Frederick 
•\Vhianey began work" as a-taeik 
with the Gresham^ Street 
accounting'finn of TTanimg and 
P niiin , in London, fbr weekly 
pay of £1 5s. After eight years 
be was admitted as a partner 
and shortly afterwards the 
firm’s same was changed to 
• pgrriTng pullein Whinney and 
Gibbons. From that point the 
firm grew relentlessly, and" the 
present day descendant is 1 the 
vastly larger international firm 
of Ernst and Whinney. / • 

Edgar Jones’ history of 
Ernst and Whinney draws 
heavily on the UK - firm’s 
records, but places it very much 
in the context of the develop- 
ment of UK accountancy at 
large. The early pages are 
peopled by obscure Victorians 
with .familiar, names— Tur- 
quand. Cooper, Deloitte and 
Waterhouse to name a few. The 
rinsing chapter takes the story 
up ‘ to r the present day- “ Big 
Eight," 7 which dominate-' the 
profession. _ , 

Given the current ftass over 
the alleged activities of cowboy 
liquidators in the present reces- 
sion, it is intriguing to note the 
extent to which the early 
Victorian accountants relied 
upon bankruptcy work. In 1865, 
for instance, 94 per cent of 
Harding Pullein ’s fees came 
from insolvency business and 
Ernest Cooper wrote -that “if an 
accountant were required he 
would be found at the bar of 
the nearest tavern to the Bank- 
ruptcy Court m Basin gh all 
Street.” 

TnncaRy business boomed for 
Victorian accounting firms in 
slumps end tailed away in times 
of prosperity. Yet the Overend 
and Gurney b anking crash in 
1866 was on such a scale that it 
provided income for Whinney 1 s 
firm, for 28 years. . 

With the passing of company 
legislation in the 1850s and 
1860s however" the stage was 
set for the growth of the regu- 
lar auditing business which can 
provide 60 or 70 per cent' of the 
income of a big modern firm of 
accountants. . Limited liability 
companies began to be formed — 
first a few, then by the thou- 
sand— although it took many 
years before the external audit 
became a matter of general 
practice. /_ ■ 

The early decades of ' the 


20th century .watt ‘the. .period 
irr TVhftir tbe ;posfitons--of .toe 
big : accounting firire were 
really ? established. - The, 1900 
Companies Act r made afi 
external aud^-craupulsa^y ■ for 
all registered $conxpai»es» am 1 
there were tfemeodous oppor- 
tunities for accoantefij to 
strike up a itdatiousbap with 
successful companies, and grow 
with them. " 

Accountants in •the big pro- 
vinctei centres began to Midc 


“H an accountant 
were " required he 
would be found at the 
bar of the nearest 
tavern to. : the JBank- 
rnptey Court in Rasing- 
hall Street”^ Ernest 
Cooper, 1865; 


up with London-based firms to 
provide a more comprehensive 
service for their bigger cKents. 
Overseas 'the map was. heavily 
coloured . red, ami accountants 
followed the trade -routes. 


Blit' : the 'really - big oppor- 
tunities were -in the rapidly 
growing American-, economy 
wherb 'Price -'Wfcterhbuse, for 
instance, ■ had - estabHsbed a 
branch in -1890. Whinney, Smith 
and Wlmmey— as the firin was 
known at this period — dosed 
its Wail Street office during 
the First World War, but the 
link' with Ernst and Ernst, first 
forged ax 1918, has survived 
until the present day. 


Techniques of accountancy 
made Taster progress ' in the 
UJS. In aspects Mke full con- 
solidation the Americans . were 
we3 ahead, and .virtually all 
the- pioneering in areas such 
as cost and management 
accounting . was done in the 
U£>. - It was the development 
of sophisticated techniques in 
companies like' Du Pont that 
made the' management of large 
companies a practical , proposi- 
tion, paving the way for' the 
merger phenomenon that hits 
characterised the ■ modern 


Western business enviromnent, 

. - The wave "Of mergers -anhang 
<>iigats has ■ forced the bigger 
accounting firms to foHow suit,- 
especiaily in the. last 20 yeses. 

. .partners in medium-sized firm s 
canoe, to live is fear of their 
4 cheats being taken over, sad 
losing their cM effts to the 
auditors . of toe aggress or. So 

accountants haw . sought 

security in she." In -1965 B frdfjii, 
Renting • and Murrey jowl 
with Whhmey, SfesSf^jgtt 
Whinney tp farm . 

Murray, and in’ I*® 
merged wasth ItirquandB ^arera • 
Maybew- under the. i 
„ national umbrella title "of Brest 
mid Whinney, 

Now the merger aOxrity has 
largely shifted into the inter- 
national dimension where -the 
objective is' to achieve. - ccmsis- 
tent global coverage to sua toe 
requirements of . rrw i itu ia & H wi al 
clients. But meantime, at the 
other end of the prof ession ,. life 
among the myriad of small firms 
- is not aH that different from, 
what Hr was for tiny Victoria* 
outfits like CMeman, TurqUand, 
Youngs or Price, Holyland and 
Waterhouse. 

It is uot,. of course, exactly 
the same. - Training IS -now a 
-burden assumed, - however 
grudgingly, by the firms' them-' . 
selves— mostly the/ big ;ones— 
where 100 years ago firins com* 

. monly demanded 500 guineas 
for the period of trtnfing., of 
articled clerics, and fond parents 
had to provide as well for then- 
son’s dailv expenses. 

Edgar Jones's book Is well 
researched and attr ac tiv ely writ- 
ten. In some' ways inevitably H '• 
defers to the tastes of Ids Spon- 
sors Ernst and ‘Whinney. Ac- 
countants emerge as rather doll 
— surety there must imvie been 
some, well, colourful episodes?. . 
— and there is ootbtog, ?toat 
such dedicate matters as how 
much accountants have, been 
able to earn. over the years. 
There' is a good dead. more about 
19th century personalities, than 
about modem ones. Yet toe 
book tells much about toe 
changing role of accountancy 
films in toe British economy. 
Accountancy and ihe 'British 
Economy 1640-1980 : The Evolu- 
tion of Ernst and Whinney. By 
Edgar Jones. BatsfarcLJZlO. 


Ban?y;RiIey 


LoDgr* 

fore 


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Contempt 

Buying outafeHowshareholder’ 


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10-15 year Capital Holiday — advances £100,000-£1 million 
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commercial and industrial trading companies on specially 
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For full details please WRITE your name on a company 
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Managing Director, Dept. FLC , 

ACKRILL, CARR & PARTNERS LIMITED 
Tricorn House, Hagley Road, Birmingham B16 8TP . * 
(We regret no telephone enquiries can be accepted) 


If you see equities as having little or no upside opportunity 
but considerable downside risk you will be seriously, 
considering positive action to decrease your exposure, If- 
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THE BEST ALTERNATIVE 


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We kpkI>I1m tooting and negotiating 
■ales of USA businesses to Europeans 
for branches or personal operation. 
Significant businesses. Serious Inquiries 
Invited. Confidential. 

ACQUISITIONS INTERNATIONAL LTD 
500 E. IttnbNd, Charlotte. 

N.C 28202. USA 
Telephone (704) US-1782 
Telex SO 20 39 Acquire On 


Processors. Whose to 


If. you have funds, of £75.0 00 . u pwards currently, or 
potentially available, please 1 WRITE for details: 


»twhE 




GreshamTrust 


MANAGING DIRECTOR, CPA 


with wMe European and Middle East 
experience hi general business negotia- 
tions and to operational, organisa- 
tional. marketing, financial activities 
to the transport! travel .service area. 
fluen t to English. Italian. French. 
Spanish. Recently returned to London. 
Seek* any local and ■ travelling 
consultancy. assignments. , . 


You'll beliving with the word processor 
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Makesure you make the right decision. 1 
The Which Computer? Show lets you j 
check out the new technology to 
benefit your business, all under one 


The 


'< Man a gi n g Director, Dept. FEB 
ACKRILL, CARR & PARTNERS LIMITED 

Tricorn House, Hagiey Read, BlminghamBl 68 TP 
(^We regret no telephone enquiries cm be accepted) 


INVESTOR 


roof at one time, 
mr first and for 


lir&ari foremost dary date of 1982 


Tuesday 19 retil Friday 22 January ^ 

Now you can decide which computer, which 
wonf processor w&h confidowe. 

Call 01-747 3131 formmplimerrtar 


Nadorai#; 

ExUbidanl 

.Binringhwik 

J9-22Jan 


hroerested *n acquirnvg new 
leasing assets within cafrial con 
of £750,000 

Kindly writ a In confidence to: 
GILL MEREDITH, NILE'ffNANGE 
AND LEASING LTp. 

P.O. Bax 107, Rsgmt Houra 
89 KIngsway, WC2 


PRINTING BUSINESS 


FOR SALE 


I u ™°w r ExttoHerrt West - 


HHmm west 

End shop location. Ptonr/mechineiy, 
SOodwiU and .bcnaSt of laase. 

.. Prica guide £3SfiOO 

rmndst'ratos 
. JO Cannon Stmt. EC4P 4BY - 


ISI 


Write Box F2B2S, Financial Timas 
TO Cannon Street. EC4P 4BY 


it Commercial Mortgages 
^ Business Expansion Loans 
& .Business Acquisition Loans 
Up to£250,000 t^raj^orixithian 


Bdhle^fiMnnOMihriMariSt^^ \J’ oCCUIltlCS 

net T nrufm M 7PfT: ^ -r' « 1 , 


TAN 

CONSTRUCTION 

COMPANY 


SPORTS AND INDUSTRIAL CLOTHING : 
MANUFACTURER— BOLTON, LANCASHIRE 
Receivers offer assets and goodwill of established sports 
and industrial waterproof clothing company, .based. ;at 
Bolton,' Lancashire. Company deals in quality man-made 
fabric waterproofs. 


MANAGEMENT COURSES 


Full information from the Joint Receiver^ 

A. Griffiths ' 

THORNTON BAKER, Chartered Accountants 
Brazennose House, Brazennose Street 
Manchester M2 5 AX 
-• - - i f el: ~061-834 '5414" ' — rr 


bebcari-groaim 


alangtoiKtoadquHe, A^toetiotoHcwrthanynMjjaw-jaT 
job is mat it demau d s so many c Gffiei i ftnf ctrqte and c • 


- 20. Wd bdek StreettLondon WlM 7PG- 
,Td:01^862334. . 


Limited 


BRITISH INVENTOR OF 

NEW ELECTRONIC POINT OF SALE CASH TILL REGISTER 
BRITISH AND WORLD-WIDE PATENTS APPLIED FOR 



A substantial Turkish construction company 
with wide experience operating in the Middle 
East and Africa would be interested to hear 
from clients wishing to undertake, projects 
in these countries. 


PERSONAL LOAN FACILITIES 


REQUIRED 


proridttycRtDgtoarage&wbta 
managem ent. Participant aoqmzo aaundexstani 

toejrowttrole and their m am ge iM strengths and w 




Genu toe enquiries from declslen nwltst wtti capital nailable please: 
All raoitoi traated to strict confidence. 


Telex : 26241 Mtan Tr (Istanbul) 


Unsecured loan business introduced by broker 
(consumer credit licence holder) up to £50,000 per 
month at good rates. Periods of 36, 48 and 60 
months/. Amounts vary £4Q0-£1,500, .Aliases ^ 
owner-occupiers. Offers quoting full details please 


Apply to: 

GOLDKORN, DAVIES A CO., SoBdtan. 

■ Langley Street, Caveat Canton, Loudon WC2H 9JA 


Managing! Director, Box F3S28, Financial Times 
10, Cannon Street, EC4P 4BY 


frogranKMisondevetopmgthfiabi 

wgi buaupss problems; Wehtetopart 
lancti oa in relation tootheri and so 
derision makiog. S^erifical 
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. etosctxvebrso &^oa return to thrir 
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*^tttbgranffl3ff^nexfbeiirBseoiec 


M SOlO be C^ible n fmnp * 


staffoxa^ 




, >-> * 




ENGINEERING COMPANY 


North Midlands near to Ml. 16.000 sq ft Modem Factory well 
equipped to undertake Materials Handling, Structural Steelwork 
and Special Fabrications. . 

Skilled labour force. Technical Staff and Management. 

the owners in their desire to keep the labour force together, 

would welcome discussions on any viable proposals including: 

a) Undertaking work at recession rates 

b) Joint venture with development of new products 

c) Sale of Company as going concern. 

Write Box F2829, Flnandal Times 
10 Cannon Street, EC4P 4BY 


WANTED FOR CASH 


WANTED 


muLr 




Industrial Property Investment Company 


READERS ARE RECOMMENDED 
TO TAKE APPROPRIATE 


Company with substantial property assets urgently required. 
Outright share purchase — maximum consideration £10m — 
location immaterial — all propositions considered in strictest 
confidence. 


PROFESSIONAL ADVICE 


BEFORE ENTERING INTO 


. Controlling interest hi a 
manufacturing company in the 
Midland?, Yorkshire or 
Lancashire 

Current profitability not essential 
Up to BWm avsMabls 
Details to Box F282B 
Financial Timas 
10 Cannon Street, EC4P 4BY 


I To: Mr. Charles Grants 

cMSSSgSS-. 

I 

■ IX t > - . - ■ 


School i 


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oatbtVmi 


Fall details to: 

P,O..BOX 5, CIRENCESTER 
GLOUCESTERSHIRE GL7 SLS. 


COAWWTAl£NTS 


DCPgRiEWCEO eCOMPAHY- DIKCCTOR If 
now available to assist companies Aari 
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plmes.- 10 cannon 'Street. ECCP ‘4flY.. 


Name. , 

Job Title 1 




hnfMEMt-* lXASrNd nt triV 1 wm- 

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v : V-- - : -^'\' : ^;-<;t' : ”■• .’ ; .- 

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realization of 

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Limited 



• • -Contact - •- . - _ 

Mark JGng or Jeremy Metcalfe 
Commodity' Analysis LimitecL 
‘ : 37/39 Sfc‘ Andrews Hitt ■ 

' LtondorrEC4 ' •• 
• ' Tek 01-236 5211 . 



: Year-end v 
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The owner of a very well known medium size 
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.V, with advanced and promising technology is looking for 
V an active industrial partner with capital 
\ \ . For further details please write to: 

* V p - R- HUBER INDUSTRIAL CONSULTING 
Muinaustrasse 8, CH-8008 Zurich, Switzerland 
Phone No. 01^^2.18 


SOVIET UNION 

East European marketing team reguar ly visiting the USSR 
specialised in light, chemical and mining industry interested 

\ . in additional representation /consultancy. 

Write Box FJ2812. Financial Times 
10, Cannon Street, EC4P 4BY 


.Full Service ifour Business. 

0 > .Lrw and Taxation. mtvIcm 

• Mailbox, tafaphono and telex 
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.. jedmialsinOon-Swiss and foreign 
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Full confidence and discretion 
" assured 

. BUSIN KS ADVISORY . ... 

SERVICES . 

7 rt» Miny, 1207 Geneva 
Tal: 38 05 40 - Talvc 23342 


GOLD BULLION 
KRUGERRANDS 
BOUGHT AMD. SOLD IN STRICTEST 
'CONFIDENCE 
FROM ONE COIN UPWARDS 
Frpa advice avails bln 
. Please phone: "■ 

. Mr-Cavandish or Mr Woods- 
0244^4315/378595 
Shaw CavandEsh & Co 
(Buflion Auriart) ' . • 
Cavxndixh- House. Ouster ■ 


INVESTMENT OPPORTUNITY 

- to nmousc 
not mora than 3 nwerWili registered 
vuuii tprlc*” fluid e £30.000 to 
£30,000) (or- location In the SoflUi 
or France with 

1,-12h% Tax. Free return faHber toed 
■with- guarantee or variable with. 
.■' actual Income:- 

Z.J*xsstble hedge * galni* Mura ex> 
■ ■ chaoaa controls and currency 
' flmmmimi- 

S. Opportunity of baslnou 'travd end 
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tangible and mobile asset. Inspection 
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aiiTun- buildlDfl guwsntae- 

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TaTl Eshsr (0372) 82487/68780 


PUBLIC. RELATIONS 

Ytiu supply' tba -product® and 
Doeson Public Ratations will provide 
The onquiriaa. Baaad 'hn Kant and 
(jOfidon: Dmont art an aatabriahad 
consultancy with 22. years' experi- 
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accounts. Dvar. th* yaar*. thay 
havo' prdvad - that Public Halations 
ia ..an -attaeOva . marfcodng tool. 

'. For further Information: 

; Tol: JahcSyvord on 079 582 5468 


100% TAX 
ALLOWANCES 

. (F.A. 1980) 

available to individuals 
or corpora tioas 
on purchase of 
Freehold Industrial Units 
2.500 sq. ft each 
Wolverhampton £75,000 


13/14 Queen St, London, W1 

01-499 4293 


WHOLESALE GROCERY 


mLLTh 


WTTH BONDED FACILITIES 
The Company supplies both 
ofFshore and onshore outlets. 
Privately owned and long 
estab lish ed in Scotland . 

Well placed for further 
expansion Into North Sea 
offshore supplies market, but 
needs additional partner with 
compatible interests. 

Write Box F2730. Financial Tinea, 
10 Cannon Street. EC4P 43V. 


EXPANDING OVERSEAS? Dis&ihoto*. 
joint ventures, meryen- InHnuticiHJ 
urvfcc. Hlob t*ch. specialists. Stephen* 

. mb Assoc.. P.O. Bex 115. AmcnhaDl, 
Bucks. Tel. 02403 4536. 


FINANCIAL ADVICE 
EQUITY PARTICIPATION 

We are a financial subsidiary of 
a public company and we are 
seeking minority interests in 
small well run companies based 
within 100 miles of London. 
We would expect to appoint a 
director to the Board primarily 
concerned with the financial 
affairs of the company. 

If you are interested, please 
write to T. H. Barnes at 
3 Wimpole Street, London, W) 


STAPLES FOORD & CO. 

(Chartered Accountants) 

arte retained by clients wishing to 
dispose of total shareholding in the 
business of Funeral Directors lor 
cash consideration in the order ol 
El .4 million. Principals only please 
apply to . Carevslie House. 19 
Goring Road. Worthing, West 
Sussex, BN 12 4AP. providing finan- 
cial references. 


LIMITED COMPANIES 

FORMED BY EXPERTS 
FOR £85 INCLUSIVE 
READY MADE FOR £95 
COMPANY SEARCHES 

EXPRESS CO. REGISTRATIONS LTD. 
Up wo ah House 

'25-35 City Road, London.- EC1 
01-628 5434/5, 7361. 9936 


MANAGEMENT CONSULTANT, Company 
Doctor Terence Pay and Company, 
telephone 0472 EBS557 for personal 
service. 

£1 A wee K FOR EC2 A DDK ESS combined 
with phone messages and telex under £4 
a week. Prestine o faces near Stock Ex- 
change. Message Minders International. 


CAR CONVERSION COMPANY has for 
tale new product, complete with Ugs. 
Mttcnu. tec., with excellent long-term 
potential. Total manufacturing rights, 
etc. £50.000. Write Box F2S17. 
Financial Tunes. 10 Cannon Street. 
EC4J* 40Y- 

VEMTURE CAPITAL REPORT. 2 The Mall. 
Brfsoi. The link oe tween investment 
fundi and small businesses. In vest ors 
and entrepreneurs ring (02721 757222. 


businesses for sale 


FURNITURE 

MANUFACTURERS 

K)Wx EAST' LONDON and ANDOVER 

Old Established Manufacfurers of dining 
room and occasional, -furniture with pres- 
tigious list of cUstomdfe; Part freehold and 
long leasehold :factoiv at Bow of 59, GOO 
sq. ft, arid short leasehold factory at An- 
dover, of 26,000 sq. ft. ' 

Enquiries to: R- ,D. Aj utter . ; 

- Peat. Marwick.' Mitchell A Co. 

1 Puddle Dock ' - - 
Blackfriire “London EC4V JPD\ 

. Phone.-. D1 -136 8000 Telex: 8880 IB 

Tfaot Mortwirfr Mitchell &Cq 


MEGHANIGAL/ELEGTR0N16S 
BUSINESS FOR SALE 

Well established predsion fabrication and assembly 
- contractor to the electronics industry 
• ; : Location: Essex' -.-> 

r-.l : .Particulars .auoiZflble from: 

01-831 7130 Ext 3415 


. FOR SALE 

telephoned answering equipment 
distribution COMPANY 

NATIONWIDE RETAIL AND WHOLESALE OlfllfTS.. 
LEADING BRAND NAME 

VALUABLES: ASmOU? PWM1S6S (WE ST END, LONDON} 

TBS? c. m b^. ■ • ; 

p"o Bolt 137 ‘l^SffiR'JSswit ^Lindon BC4DWR'. 

Tto an W TCWRSS G 



WILD BROTHERS . 
(BUILDERS MERCHANTS)' 
LIMITS? 

,i»a?!BKSSS*3 

CAMBORXE, CORHWLLL 

2V*cr» freehold, out ®»-wwm.DW 
home lmp^m«09M . 

M ft “ sains and stomfie ■J**; 
Current pUnning MPWj* 
other retail acovrtiee ffora a«ta. 

- For timber detail* 

W-..DL Williams. ' 

11 Cbapsl jBtrwt. Cambort*. 

. ComwsB .TH14 8EH 


FOR JEAUt OtUm SRff InreMyiAcM AMrtlcy. 
EttsMWtad 1« . ydtre In sttncdvc 
Midlands., to** . BdmnaUhrdaim l t mnto nt 
pCtootUL Oifw avir E2J.50Q. Writs 
• BoxGPen. IttRaMM'lW. -ia Cunsa 
StrML.EC4P.jWVk, 


FOR SALE TEXTILE COMPANY 
IN LEICESTER AREA 
Modem pramines. Good range -td 
tnodam squiprtwnt eampnsmg 
mainly a and W gaujre 

Tumovar about £1^00.000., 
Principals -only- /daw »,■ 

|. 5. Murdoch Esq, CA, . 

Messrs Thomson McUntock & Ca, 
24 Biythswood Square. 

Glasgow 02 4QS. 


PURCHASER SOUGHT 

for sports good* aMOufecninng and 
.importing company handling and 
producing top sailing lines. Average 
turnover lest litre* ¥»« £» 
o.a. Currently at Vjje ***• 
million, potential G rnilhon plus 
Er ,Sffi/3 Gross profit in excess 
of i^lghiy pr^ubta. Good- 
wIK and Assets lor sale ai £350,000. 

wfitl Box enao. 'g r ““- 

JO Cannon Street, £C4P 4Si. 

ion FURNISHING, twslMM. 

rC«SiTT«M. lO Cwnee s * zmM - 

IC4P 4*V. 


FOR SALE 

HEAVY ENGINEERING BUSINESS 
v As going concern 


LOCATED IN WEST MIDLANDS 
With in easy reach M5/M6 Motorway! 


Specialising in fabrications 
Machine build and mechanical handling 
Well equipped with lifting up to 50 tons 

FREEHOLD SITE — APPROX. 9-5 ACRES 
with 1 64,000 sq ft of factory and office buildings 

Turnover approaching £4m 


Replies from principals only to : — 
D. Maxwell, Coopen & Lybnxnd 
43 Temple Row, Birmingham E2 5JT 


A Company manufacturing good quality 
. solid pine furniture 

selling direct to the public and solid oak/pine doors for 
kitchen units under contract to the trade. 

Well-equipped modern factory in Bristol and three showrooms- 
Turnover for 12 months to September 18S1 approximately 
£2J5m. 

For Sale as a Going Concern 
BAIRSTOW EVES 

Provincial House, 218/266 Bishopsgate, EC2M 4QD 
Telephone No- 01-377 0137 


FORSALE 

SpeoaBsfc Wgh quaiiV limited edraon book printers and 
punching company. 

Freehold site atllWey, West Yorkshire. 

Principals orJy. Please contact: 

&TducheRoss & Co. 

Rj&ESs.Touc&e Ross&Co, Baltic House,'MountSBuartSqwre, Carrffif. 
^ Tek (Q222) 399000 Telex 498473 J 







This cash voucher 
entitles your company 
to an immediate 

75% CASH 
AGAINST 
INVOICES 


Cash fhiwproblems?TIien cash this! 

Need cssh now? You've got Itright them onyonrboolcs! 

We will give you 75fi cash agaiztstyourhiyolcGs- zaoneyyoQ can 
jmtto work today. You. get the 25% balance, less our charges, when 
your customer pays. And the custo m err emains to tally unaware 
or the arrangement Post this voucher now withy our name and 
. address, or phone us. 

Confidential Invoice Discounting Umfted f 

Sovereign Home, Queans Rood. Brighton BN1 3WZ , ■ 

TakpbonBjBriglUon (0273)21211 Telea;87382 -S 


FINANCE FOR 
GROWTH 


iSwitzerland 


The Swiss Franc Is one of the world's strongest currencies . 
How can you make this face work to your advantage? 

BUY SWISS PROPERTY 

.Own .'an apartment and let us arrange to have It rented in 
your absence, earning income In Swiss Francs. 

Prices range from 436.000 fully Inclusive of furniture and 
garage. And how an you get credit facilities up to 70% and 
with low Swire interest rates? . . . 

Send your business card or this coupon tor 
PROPINVE5T SJL, Attn. Alain Bougard 
84 Rue dii RMne, Geneva 1204, Switzerland 


Address 


SFT/1/82 


m 



Factoringprovides no-strings 
finance beyond conventional AlexLawrie 
borrowing limits. Factors.Limited 

For details contact: London (01) 626 0484 

Bristol (0272) 291388 Coventry (0203) 56653 Manchester (061) 8347415 
Newcastle (0632) 325 879 Ed inburgh {031) 2264599 Banbu ry (0295) 5604 1 


£ 2 , 000,000 + 

PROPERTY DEALING 
TAX LOSSES 

Public Company with suspended 
quotation ia seeking to mergo with 
profitable private or public company 
interested in taking advantage ol in, 
substantial tax losses. A relisting 
is possible after capital restructur- 
ing. - Principals only please reply in 
strictest confidence lo; 

The Chairman 
Suiie.*'D,“ 

69 George Street 
London, W1 . 


ARE YOU WELL-CONNECTED? 

Strong company offering unsur- 
passed service operation to Industry 
throughout the UK seeks vigorous 
breakthrough. We need 4 person 
or company who Can hatp us 
PROMOTE our activity FROM THE 
TOP. Employment is not ottered 
but fees ol substance for productive 
introductions. interested parties 
please writs. All enquiries will be 
answered. Private and Confidential. 
M. J. Abrahams,, 56 Hayes Street. 

Hayes, Bromley. Kent BR2 7NX. 


Tel. (Home): - (Office): - 


ETC Special Report No. 305 

Tax Havens and their uses 

"Where there is a will there is a way. The attractions;, 
andpirfells, of tax havens as a counter to the ever 
. growing burden of taxation are examined in this 
comprehensive study of the individual havens 
available both to corporations and individuals. 

Price £30. Payment with order please to 
The Economist Intelligence Unit Limited, . 
Subscription Department Q?T) t 27 St. James’s Place, 
London S W3 A 3NT. Telephone: 01-493 6711. ’ 


PLANT AND MACHINERY 


INVESTMENT OPPORTUNITIES 

READERS AAE RECOMMENDED TO TAKE APPROPRIATE 
PROFESSIONAL ADVICE BEFORE ENTERING INTO COMMITMENTS 


RECONDITIONED PRODUCTION PLANT 

STRIP ROLLING MILLS, two high and four high — various capacities. 

COIL SLITTING MACHINES. 2QU min/ 1250 mm wide — various capacities. 
SHEET DECOIU (fatten & cutfength 600/1630 mm wide — various capacities. 
WIRE DRAWING MACHINES — various capacities end types. 
DRAWBENCHES, VERTICAL ft HORIZONTAL BULL BLOCKS. SWAGERS. 

ROD A WIRE DECOIL, straighten cut to length lines — ell sizes. 

BAR AND TUBE REELING. SECTION STRAIGHTEN ERS — various capacities, 
SHEET FLATTENING ROLLS/ SECTION ROLL FORMING MACHINES. 

SCRAP BALING PRESSES, SHEARS, SAWS — various cspacties. 

Agents lor the disposal of complete manufacturing facilities 
W EON ES BURY MACHINE CO. 

Oxford Street Bilston. West Midlands - Tel: 0902 42541/2/3 - Telex: 33614 


PROPERTY 

COMPANY 

Invites financial / management 
participation in developing 100 
bedroom three star beach hotel 
in a tourist resort of a fast 
developing Far Eastern island. 

Investment and profit 
Repatriation Guaranteed 1 

Write Box F281B. Financial Times. 
10 Cannon Street, EC4P 4BY. 


•IMPORT/ EXPORT 
FINANCING 

•INVOICE DISCOUNTING 

Letters of Credit opened 
Back to Back L/Ce 
Domestic invoices Discounted 
Contact 'George Raphael art : 
FORBES CAMPBELL (FINANCE) LTD 
9 Artillery Lane. London El 7LP 
Tel: 01-377 8484 


WlNfLOSC. Gambler with vision to back 
or buy versatile novelty. Owner female 
entrepreneur. Already running; produc- 
tion, distribution, export, shewing 1*82 
major exhibitions. Into 4Ui Year. Bel 
£5.000 minimum. Also other projects. 
01-723 3080.. 

TWO MBAs with considerable Industrial 
experience seek private Arancial back- 
ing lor acquisition or manufacturing 
concern. Up to £250.000 required. 
Box F2B23, Financial Times. 10 
Cannon Street. EC4P 4SV. 


AUCTION 

DENVER, COLORADO 
JAN. 19 * 1CHJ0 AM 

10 WORKOVER RIGS 

1-1965 Cooper. 1-1974 Wilson. 
1-1978 Skytop Brewster, 1-1966 
Cardwell. 1-1966 Cooper. 1- 
1 968 Cooper, 1-1 972 Cooper. 2- 
1974 Skytop Brewsters, 1-1977 
Cooper. 

Hie above back-in workover rigs 
are mounted on 4 axle carrier, 
complete with all miscellaneous 
handling . equipment, including 
BOPS, Pumps, Closing Units.etc- 
Contact: Pete Kirvfle or 
LD. Henderson 


SOOUBJ, 

Sum i* 3 
IMM.Tx 75234 
7l4S2»*tt* 
Twm*sWm 

aowMHHaa 
US. Wan 
KXVSZMK24 


I AUCTIONEERS I 


In Canada, Contact 
George Chebuk 
403/468-6001 


WICKMAN AUTOMATICS 
FOR SALE 

1"—3 (1 S7B) end IV— 8 (1880) 
Multi-Spindle Screw machines plus 
comprehensive range of tooling 
including Threading, Chasing and 
Pick-up anachmeni5. Both machines 
in "as new condition" can be 
inspected under power end are 
available for (ess than 50% of 
maker's current list price. 

For further details contact 
Box G762 4. Financial Times. 

10 Cannon Street. EC4P 4 BY. 


PLANT AND 
MACHINERY. 
ADVERTISING 
appears every 
TUESDAY 


WANTED — Complete manutocturl no. Pro- 
cessing plants. For cor.'idannal disposals 
contact Box G7623. Financial Times, 
to Cannon street. EC4p 4EY. 


PRECISION 

ENGINEERING 


(Punch press tooling, thread 
grinding, street metal work. etc.). 
Modern freehold property approxi- 
mately 15,000 sq ft. Turnover 
approximately El ,3m pa. Com- 
prehensive plant. Skilled experi- 
enced workforce and management. 
Wiltshire. 

Principals only apply in writing to: 

Box FT/71B, c/o St James’s House 
4/7 Red Lion Court. Fleet Street, 
London, EC4A 3EB 


FOR SALE 

Retail dress fabric 
company 

Household name. Eight outlets 
in England and Scotland 
Turnover in excess of £Im with 
tax losses of £750,000 
Principals only please reply to: 

I. S. Murdoch Esq. CA 
Messrs Thomson McLIntocfc b Co. 
24 Blythswood Square 
Glasgow GZ 4QS 


BUSIN E5S FOR SALE 
Comprising of modern 
purpose-built, single-storey 
machine shop 

approx 10,000 sq ft in Freehold 
Premises close lo City Centre and 
•S9y access to motorways. Wall 
equipped with 18 Multi 6 Spindle 
Automatics from ' z to 2\ capacity, 
at pros ant working ar full capacity 
including nights. SiaR comprising 
15 craftsman/operatora. Good order 
book with well established custo- 
mers. Present owners wishing to 
retire. 

Write Box G762T. Financial Times. 
10 Cannon Street, EC 4P 4BY. 


WHOLESALE CONTRACT 
FLOORING BUSINESS 
with Freehold Premises for 
Sale in the North East 

Turnover over £4 million p/a and 
established goodwill. 

' PROFITABLE GOING CONCERN 
available at £30.000 plus stock at 
valuation. 

Box No. WCF/367, David Harden, 
Streets Advertising Limited, 
Huhon House, 161-1B6 Fleet Street, 
London EC4A 2DN. 


BUSINESSES WANTED 


ENGINEERING COMPANY 
WANTED 

(OR PRODUCT RANGE) 

Waodrurh Investments Limited wish to buy a iight/medium 
mechanical and/or electrical engineering company, turnover 
from £1 million to £2 million, or a product range yielding a 
similar turnover, to expand the interests of their engineering 
subsidiary PLC Peters Limited. 

Pfease contact in comp/ete confidence: 

K. L. Brieriy, Wood rush Investments Limited 
c/o PLC Peters Limited 
Pasadena Close, Hayes, Middlesex UB3 3US 
Telephone: 01-573 6172 


OUR CLIENT, A LEADING 
PLANT HIRE COMPANY 

Is Interested in acquiring a 

Scaffoldmg/Butiding/ Allied Trade Company 
established in North or West London 
with a turnover in the region of £lm-£lm 

Details in writing please from principals only to: . 
Managing Director 
SHAPCREST LIMITED 
21 Catherine Street, London WC2B5JR 


NORTH WEST 
BUSINESSMAN 

with wide marketing and 
exporting background seeks 
equity and executive interest in 
industrial and commercial 
concern, funds in excess of 
£150,000 are available for 
investment. 

Will principals only please 
reply, in the first instance, 
quoting reference D5346,to: 

I. M- Gibson 

Thornton Baker Associates Ltd. 
Brazennose House 
Brazennose Street 
Manchester M2 5AX 


WANTED— ENGINEERING BUSINESS 

with complete machine shop, preferably without the 
labour force. 

Please write to Box G.7625, Financial Times, 10, 
Cannon Street , EC4P 4BY, in the strictest confidence. 


RETIRED BANKER 
AND SON 

HAVE UP TO £150,000 
TO PURCHASE ALL OR 
PART OP A BUSINESS 
Based in London area 
Preferably involved in Services 
Please reply 

Box F2822, Financial Times. 

10 Cannon Srirer, EC4P 4BY. 




01-4466401 

CONSUMER GOODS COMPANY 

Our cileitt Is a highly luccMstuI company supplying consumable fiooqa, both 
own-labd *n4 branded, w all grocery outlet*, hypermarkets, supermarkets, 
cash-and-carry, etc. throughout die U.K. They have several million pounds 
to Invest in a well-maoaged organisation with the ambition, energies and 
products to expand In the grocery market. Genuine enquiries are invited 
which will be treated with the utmost confidence. Phone or write to; 

Tom Angear. 

T rebel Associates Ltd., 22 Heron Place. 9 Thayer Street, London wim 5 LX. 


ACQUISITIONS FOR CASH 

We are a large private investment company seeking 
to enlarge our asset base by acquiring for cash 
companies with substantial fixed assets. 

Kindly icrite in confidence to: 

• Box G. 7587, Financial TtuiM, 10, Cannon Street, EC4P 4BY 


METAL FINISHING 
FACTORY REQUIRED 

Zinc electroplating and/or 
powder coaling factory 
required in 

Herts., Bucks, or Beds. 

Purchase or equity 
participation 
Principals only 
Please reply lo. — 

Horvillr McKinnon Limited 
Marlowe House 
Sidcup, Kent 


FOR SALE 

3lY company with two outlets ra 
Central Scotland. Good locations 
Annual turnover £750.000 
Fof further details apply to: 
Thomson McUntock & Co. 

24 Blythswood Square 
Glasgow G2 4QS 
Relaranca: S/iM 


EXCITING CONCEPT «tf PaWle Horn*. 
• wine bar. ntRaurask cbippIk in Surrev- 
Offire »«r £250.000. PriiKltute only. 

Pippua! du* to cflnmuy dbmXatlaii. 
BaM G7582. Flawtia! Time*, 10 
CUHM SWMC. EG4P 4BY, 

W MABETY COMPANY WJtb *X fW 
aula. Write Sox G7SZ2. Financial 
Tiro**, 10 team Sweet. EC4P 4tY. 


HOTELS & LICENSED PREMISES 


FOR SALE BY TENDER 

Freehold Free House in f acre 

MANCHESTER BELLE VUE 

Three Bars. Clubroom. Extensive accommodation. Turnover 
£111,000. 800 beer barrels p-a. Enormous potential. Sole 
Agents. 

ELEURETS — 01-636 8995 

MMAU CASINO AND HOT*. For uta. j Jjtv 

Low ©urn***"- Gotr. wnnlc. Land for Tdrewer weaadc cum. For *■'«*£ 


WANTED 

We seek to acquire 
CONTRACT HIRE 
COMPANIES 

currently operating car and van 
fleets in excess of 100 units 

' Please write in the strictest 
confidence to: 

Th* Managing Director 
C0WIE CONTRACT HIRE LTD. 
Hylton Road, Sunderland, 

■ Tel: 078344122 


•KMMiM. Sabart Taft, 20S.G22-6329 
V 305-522-4777, U4A, 


Turnover excaad* cum. For *ale by 
Teadar February 4th. For tender tenna 
and full details apply Oliver Kiahm 4 
Flynn. 33 Albion Place. Leeds LSI 6JR- 
Taf. (0532) 450681. 


CLIENT WWMES to ( J*«hare. Cardan 
Centre* or auitable altos In North Wi.-tr., 
Write Andrew Turner A Ge., St Brawn 
SL, Manchester M2 2JX. 


UIXTON & LOWE LTD. 

Specialist Agents in Du* 

. SALE 6 PURCHASE OF 
NURSING & REST HOMES 
HOmS/CATERtNG 
ESTABLISHMENTS 
i „ (confidentially) 

! we urgently nqitrc sound businesses 
i ail types to m«> steady demand, 
ktofoe** Chamber, 9Sa Burl tog ton Rd.. 
New Malden. Surrey 
1 01-949 5451— -PBX 


errr BA5tD croup seek to acquire 
Insurance Brokers. Locality unimportant. 
Management can be retained. Retire- 
ment situation adequately accommodated. 
Details hi confidence Ref. J.W.. Bax 
C76C3, Financial Times. ID Cannon 
Street. EC4P 4BY. 


PRIVATE PROPERTY 
COMPANIES OR 
INVESTMENT PROPERTIES 

Lifted property _ company is in. 
forested in acquiring above up :? 
a maximum consideration per trans- 
action oi CSDO.CO'j. Main interest is 
retail and commercial property but 
indusinel property considered in 
exceptional circumstances. 

Apply M- K. f/cConville 

Tel: 021-643 3941 


HOUSE BUILDING 
COMPANY REQUIRED 

Major public company ssc’.a ;o 
extend its miereits by the acquisi- 
tion ol on estabiisned House- 
building company rn :,*,e Home 
Counties ano Soutn East. Substan- 
tial funds available. V/a are only 
prepared to deni win principals on 
a strictly confidential basis. 

VJr'rtt Box GTE 17, Financial Times. 
10 Cannon Street. EC<P. <BV W 


« 






































Financial Times Tuesday Jamujaiy 12 19S2 


FT COMMERCIAL LAW REPORTS 


TELEVISION 


[•WaTi 


entitled to equal treatment 


MUTUAL LIFE INSURANCE COMPANY OF NEW YORK AND OTHERS V RANK ORGANISATION LIMITED AND -OTHERS 

Chancerv Division: Mr Justice Goulding: December 21 1981 


WHERE A company issues 
new shares under powers 
expressly conferred by its 
Articles,' and allocates a pro- 
portion for offer to existing 
shareholders only, it is under 
no duty to treat shareholders 
of the same class identically 
in respect of the offer provi- 
ded it acts in good faith In 
the interest of the company 
and fairly as between share- 
holders. 

Mr Justice Goulding so held 
when giving judgment for the 
defendants in an action by the 
plaintiffs, Mutual Life Insurance 
Company of New York and 
otbers, for damages for breach 
of a contract between the first 
defendant. Rank Organisation 
Ltd (Rank), and certain of its 
shareholders. The shares in 
question were registered in the 
name of the second defendant. 
Guaranty Nominees Ltd. an 
English company, on behalf of 
the third defendant. Morgan 
Guaranty Trust Company of New 
York. 


because of the effect of that 
discrimination on (he second 
■ feature of the offer, namely, the 
allocation of half the new issue 
to existing shareholders of Rank 
in preference to other members 
of the public. 


HIS LORDSHIP said that the 
plaintiffs claimed to be bene- 
ficially interested in class "A" 
ordinary shares in Rank, a com- 
pany incorporated in England. 
They sued to assert an alleged 
right to damages for breach of 
contract by Rank. The contract 
relied on was the contract 
between Rank and its respective 
members constituted by Rank's 
Constituted Memorandum of 
Association and Articles of Asso- 
ciation, which his Lordship 
would call the “membership 
contract" for the sake of con- 
venience. 

The acts alleged to be in 
breach of contract were com- 
. nutted in April 1975 when Rank 
offered for sale to the public 2 m 
class n A” ordinary shares, 
hitherto unissued. The plaintiffs 
said that, in making the offer for 
sale and subsequent allotments. 
Rank discriminated against some 
of its members in favour of : 
others, in breach of the member- 
ship agreement 

The alleged discrimination 
arose from a combination of two 
features of the offer for sale- 
The first was that Rank excluded 
applications from any person 
connected in certain specified 
ways with North America. It was 
not argued that in 1975 it was 
unlawful, ' when providing 
facilities for investment, to 
treat one section of the public 
less favourably than another on 
grounds of nationality. The 
plaintiffs' complaint arose 


As a result, said the plaintiffs, 
some members of the company 
received a valuable opportunity 
which was denied to those mem- 
1 bers who were disqualified by 
their North American connec- 
tion. It was valuable because 
the offer price of- the newly 
issued shares was below the 
market price that they attracted. 
They said that all holders of 
class 'A" ordinary shares were 
entitled to rank pari passu with 
each other, and to 'be afforded 
equal treatment. 

The offer for sale had been 
the subject of much preliminary 
consideration by Rank's officers 
and advisers. The motive of the 
advice with regard to the ex- 
clusion of North Americans, and 
of its acceptance by Rank's direc- 
tors, was to avoid the require- 
ments of registration with tiie 
Securities Exchange Commission 
of the United States and the com- 
parable Canadian commission. It 
was considered that such registra- 
tion would not be in Rank's 
interest. The motive for., giving 
preference to existing share- 
holders over members of the 
public was less clear. . 

Mr Curry, for the plaintiffs, 
submitted on the basis of judicial 
pronouncements. that - share- 
holders of one and the same class 
should be given equal treatment. 
Each shareholder had an indivi- 
dual right which was infringed if 
the company gave some share- 
holders an advantage . that was 
not given to Others of’ the same 
class. He contended that those 
shareholders unconnected with 
North- America received _.an 
advantage not allowed to. the 
plaintiffs, and the plaintiffs 
accordingly had a right of action 
against Rank. 

The authorities cited by Mf 
Curry were all. clearly right in 
the respective contexts in which 
they were uttered, but they did 
not justify the lnfetence of an 
over-riding term in the member- 
ship contract of the sort for 
which he contended. 


article 7 \-ere themselves an ex- 
press term of the membership 
contract which the members bad 
accepted. They ought not to be 
whittled down by any implica- 
tion beyond what was required 
in the circumstances of the 
membership contract, by the 
ordinary principles of the law 
of contract. 

The law of contract, in such 
circumstances and so far as was 
relevant to the action, required 
but two implied terms: first, the 
time-honoured rule that the 
directors' powers were to be 
exercised in good faith in the 
interest of the company, and 
secondly, that they must be 
exercised fairly as between the 
different shareholders. 


No shareholder in Rank had 
any right under the Articles of 
Association to expect that his 
fractional interest in the com- 
pany would remain for ever 
constant. Moreover, the reason 
for the exclusion of North 
American shareholders was the 
difficulty resulting from their 
own persona] situation. It was 
not Rank’s fault that they were 
nationals or residents of , 
countries whose laws . imposed 
onerous .obligations. 


9.35 am For Schools. Colleges.- 
.l£30j>m 'News After Noon. 1.00 
Pebble Mill ai One. L45 Bod. 
ZOO .You and. Me. -"£15 For 
Schools. Colleges. 3.10 Tom os A 
Titw. 3.40 So You Want 10 Stop 
i Smoking. 3.53 Regional News for 
En glan d (except London). 355 
Play School-. 420 Laurel and 
Hardy cartoon series. 455 
Jackanory. 4.40 Animal M 2 gic. 
5.05 News round. 5.10 .Grange 
HilL 

5.40 News. 

&00 Nationwide '(London and 
South East only). 

6.25 Nationwide; - 

655 Cartoon. 

7.05 Doctor Who. 

7.30 A Question of Sport 

8.00 Terry and June with 
Terry Scott and June 
Whitfield. 


Chris Dunkley: Tonight's Choice 


8.30 Solo starring 
KendaL 


Felicity 


0.00 News. 

325 Play for Today: •• A CoIf- 
wold Death,” starring Ian 
Richardson. 


” ~'Ir. >£tffifhq fh. 'tto* "rimr. sr hps starting tnnfgp^TTV offers, 
anctier documentary by Frank Critanorich who madethe recent 
extraordinary programme about Freddie Starr. Victoria Park is 
cicser to what' I think of as Cvitanovich territory: a collage of 
outdoor activity all occurring; in a park in London’s East End on 
Auroft Bank Holiday. Earlier Eamonn Andrews links the first. in 
a new international quiz series, Top Of -The World. The ultimate 
prize ;s a vintage Rolls. - " „ 

_ . At 9.00 XTV launch the .six part drama series Mack And Brass 
which deals with the sort of scandals in local government and land 
development which became commonplace in the ’60s and ’70s 
during massive .city, centre redevelopment projects. ..Mel Smith,, 
the stoar one from “Not The 9 O’clock News" plays .the central 
chaiseier, a ruthless businessman. 

BBC-2 presents - i*wafe Aldennasftm a Stammzte special from 
Television News whose science correspondent David -Wilson has 
been allowed inside tile weapons research establishment for- the 
first lime with a film crew. It's claimed to be simply, part 'of An' 
"open government” policy but, as Wilson says, it is no coincidence 
that it follows a huge increase in anti-nuclear feeKng. On BBC-1 . 
Robin Day starts a new series of debates on con traversal matter?. 
Talking Issue, with the question of private education.- 


BBC 2 


The making of the offer was 
actuated by a genuine belief that 
Rank needed more equity 
capital, and it was abundantly 
clear that the directors exercised 
their discretionary power under 
article 7 in good faith and in the 
interest of the company. 

The motive for refusing 
applications from persons con- 
nected with North America was 
only that Rank should avoid 
legal '.requirements • which 'the 
directors considered would be 
disadvantageous to the company. 
The. motive far the preferential 
opportunity given to existing 
shareholders, as compared with 
the general public, was not fully 
disclosed, but it formed an 
essential part of the considered 
advice given to Rank by its 
financial advisers and -accepted 
by its directors. There was no 
allegation Dor evidence that the' 
directors had any improper 
motive for. adopting that feature 
Of- their advisers' proposals. 

With regard to the test of fair- 
ness "as between different -share- 
holders. it must be borne in 
mind that the equality of in- 
dividiual shareholders in point 
of right did not always require; 
identity of treatment. 


Finally, it was not unfair to 
the North American shareholders 
that Rank should raise capital in 
the way In which it was advised 
and its directors believed, was 
most advantageous for the 
purpose of maintaining its in- 
vestment programme. The 
successful fulfilment of that 
programme would give a pros- 
pect of contiauing benefit to all , 
members, whatever their per - 1 
sonal situation. 


10.30 Two of A Kind: John 
. -Denver and George Burns 
entertain. 


11.20 Taking Issue: Robin Day 
chairs the first of three 
topical debates— Should 

Private Education be 
Abolished? 

1L50-1L55 News Headlines. 


11.01) am Play School. 

3.55 pm Rock Athlete. 

425 Images of War. 

-L50 The River Keeper. 

*5.40 Undersea Kingdom. 

6.00 The Waltons. 

6.50 News Summary. 

6.55 Sprue Chillers. 

7.05 Australian Film Season: 


u The Irishman.' 1 ' - 
SJ>G Nightcleaner. 

9.00 pot Black 82. ..... 

9.25 Inside Aide nnaston. 

10.15 Darts: Embassy . World 
. Professional . - Champion- 
ship. 

10.45 Newsnight 
1L30 Darts: ' - - ..... 


9.35 am/ Schools Programmes. 
12.00 Button Mood. 12.10 pm 
Let’s Prebfend. 12.30 The Sulli- 
vans.- LOOWfwsr^as- FT Index. 

■ Thariics News. T5ff Take the ' 
Hjgh Road. 2.00 After Noon Plus, 
□resented hy..5l3.ris Nicholson, .. 
2,45 Born and Bred. 3.45 Wel- 
[Tome Bac f. Hotter. 4.15 Danger- 
mnuse. 4. ffl Emu's World. 4.45 
CB TV':/ Ace Reports. 5.15 
Enimerda^c Farm. 

5.45 NeJws. 

6.00 Tfc lines A'ews 
6J0Htlp! 

&5S Rffljortiw London 

7.30 Th i Jim Davidson . Show .- 
wjfh special guest Paf- 
Cofcmbs and Chas & Dare" 
arid Midas Touch. 

8.00 D6nt Rock the Boat star- 
ring .Nigel Davenport,': 

■ _ Sheila White, .John Price ; 
1 • apd David Janson. 

8.30 Ttap of the World pre--” 
sen ted by Eamonn. 
Andrews. 

' i).00 Muck and Brass. 

10.60 I jews: 

1030 Vitoria Tark: an .evneas 
tton of every Englishman's 
nostalgic memory of long, ■ 
ho L -sum mere k> an almost 
. V ■ forgotten past - 
1L30 The -Lada Snooker Classic, - 
12JA am Close: ‘Sit up & Listen*. 

. with Ginctte Spanier. .. 7 


' t Indicates programme 
in black and white 


The action was dismissed- 
For the plaintiffs: Peter Curry, 
QC. and Thomas Stockdale 
( Theodore Goddard and Co. ). 

For. Bank: Richard . Scott. QC. 
arid ' ■ ‘Richard Sykes, QC 
(Richards. Butler and Co .). 

For . die second and third 
defendants:' Mary Arden 
(Slaughter and May].. 


‘All IB A Regions as London 
except at the following times: 


ANGLIA 

1220 pm Gardening Tima. 7.20 
Anglia News. 3.45. Does the Team 
Think? 6.00 About Anglia. 6^5 Cross- 
roads. 7.00 Bygones. 12.25 am A Bit 
at a Pantomime. 


By Rachel Davies 

Barrister 


Stamp booklets 


BORDER 

1.20 pm Border News. 3.45 SrooWsr 
5.15 Mork and Mindy. 6.00 Looka round 
Tuesday. 6.35 Crossroads. 7.00 
Emmcrdale Farm. 11 JO Border News 
Summary. 

CENTRAL 

12*30 pm Gardening Tune. 120 
Central Newi. 3.45 Does the Team 
Think? 5.15 Mork and Mindy. 6.00 
Crossroads, fi.25 Central News. 7.00 
EmmerdaFa Farm. 11J30 Central News. 
11.35 1982 B inline Grand Masters Darts 
Championship. 


ljns«: ; me News. 3.45 Square One. 
5.20 Crossroads. 6.00 Channel Report. 
6.30 Does the Team Think.' 7. OQ Private 
Se-.'amm. 10.28 Channel Lata News. 
12.25 am Com manta ires at Previsions 
Mei&arolsgiaues. 

GRAMPIAN 

5 30 am First Thing’ 12-30 pm 
Garden i.-g rims. 7.20 North fleyis. 
3.45 Lada 5“ anker Classic. -6.00 North 
Tomgn. 6.35 Crossroads. .7.00 The 
Twi ol Us. 1225 am North Headlines. 


except: 9.35-5.50 am Am Gymni. 
1 1 .33-1 1 .54 About Wales. 12.00-12.10 
Y Uysiau Lkm. 4.15-4.45- Comigam. 
5.10-5.20 Mr Magoo. 6.00 Y Dydd. 
6.15*6.30 Report Wales. 10.30 Peihau 
Pnn. ■ 11.15-11.30 Henley. 


. . Lemon of ‘lire Week • 520 Coast,-. 
To Coast. 5.50- Coast tr. Coast fsoir.J. 
625 Crossroads. 7.00 EmmenUie - 
Farm. 12-25 am Company., 

TYNE TEES 


GRANADA 

120 pm Granada Reports. 3.45 Lads 
Snooker Classic. 5.15, Orff rent Strokes 
6.00 Granada Reports. 625 This If 
Your Rigrr. 620 Crossroads. 7.00 
Emmenlele Farm. 


history, course 


CHANNEL 

12.30 pm Mr. and Mrs. .720 Channel 


. HTV 

1230- pro Gardening Tima. 1.20 HTV 
News. 3.45 Does the Team Think?. 
5.10 Ask Oscar! 5.20 Crossroads. 
6.00 HTV Nows.. 620 Arthur of tho 
Bn tons. 7.00 Emmerdale- Farm. 10.28 
HTV News. 

HTV Cymru/WalBs — As HTV West 


SCOTTISH 

1220 pro Gardening Time. . 1-20 

News and road and weather. 1,30 The 
Electric Theatre Show. 3.45 Lada 
Snooker. 5.15 Per Subject. 5.20 
Crossroads. 6.00 Scotland Today. 6.20 
Job Spat. 620 What's: Your Problem? ■ 
7.00 Take die High Road. 1225 am 
Late Call. " ' ' ’ 

TSW 

1229 pm Mr and Mrs. 120. T5W 
Haws Headlines. 5.15 Gtis Honeybun's 
Magic Birthdays. 5.20 Crossroads. 
620 Today . South West. 620. Does 
the Team "Punic? 7.00 Private • Ban- 
jamln. .10.32. TSW' Lsia News. 
1225 am- Postscript. 

TVS . 

1.20 pm TVS News. 3.45 Doss the 
Team Thmk? ' 5.15 Watch This Space 


925 am The Good Word. 920 N*-rSn ■' 
East Nbw 3 ; 1-20 Pm North cast News" 
and Lookaround. 3.45 The R:T'da*’-S. 
5.15 survival 6.00 Narih 5au Nawk. 
6.02 Crossroads. 625 Northern l-fs.-. 
7.00 EmmerdniD Harm. ' 10 30 North . 

East - News. • 11.30 Tm Two 01 Ui.v" 
1220 The' Sayings ol Jesus. 


ULSTER 


pm Luf.ftrt-.liw. 3.45 SrtemVer. 
4.13 LH star" News: 6.15 Watch Tji:* 
Space'. 5.30 'Good" Evening . Ulster,-' 
6.00 Good Evening Ulster. 6-36 Cross-: 
roads. 7.00 Ernmerdnle Farm.' . 1029 
Ulster weather. 11.30 Bedtime. . - 


YORKSHIRE 

1220 pm Docs the Teem Thinfc? 
120 ' Calendar ' Nows.' .3.45 Calendar' 
Tuesdays 5.15 Benson. 620 Calendar' 
(Emley Moo) 1 and Belmont edition). " 
635 Crossroads. 7.00 Emmerdale Farm. 


The issue of share capital was 
covered by article 7 Of Rank’s 
Articles of Association, tinder 
that article the directors . had 
wide discretionary powers which’ 
covered the present transact] ori 
The powers, and provisions in 


The North American share- 
holders were fairly treated on 
the occasion of the offer' for sale, 
notwithstanding their exclusion 
from participation. Such ex-, 
elusion did not in any way affect . 
the existence of a shareholder’s 
shares nor the rights attached 
to them. It was not alleged that 
the transaction had any effect on 
their market price, nor was there 
any suggestion that the terms of 
the offer for sale were improvi- 
dent. 


THE THIRD in a series of 
stamp booklets with' covers 
featuring follies, museums, 
period costumes. . and ; postal 
history on -the covers will be 
available from February 1, 
when new postage rates came 
into effect . 

The 50p 'booklet . features 
Paxton's .Tower in Uanarthney, 
Dyfed: the £1.25 shows Oxford's 
Ashmolean Museum; the £1.55 
portrays women’s fashions of 
1E30 to 1850; and the £1.43 
features James Chalmers, born 
in Arbroath 200 years ago, who 
produced ’ the first adhesive 
stamps. 


<S) Stereophonic broadcast 
t Madium wavo .. 


RADIO 


The 50p booklet wiH be used 
in vending machines and the 
£1 25, £1.43 and £1.55 booklets 
will be on sale at all post offices. 


RADIO 1 

5.00 am As Radio 2. 7.00 Mika Read. 

3.00 Simon Batn. 11.30 Dave Lee 
Travis. 2.00 Paul Bumen. 320 Stave 
Wright. 5.00 Peter Powell. 7.00 Talk- 
abaut. 8.00 David Jensen. 10.00-12.00 
John Peel (S). 

RADIO 2 

5.00 am Steve Jones (S). 720 Terry 
Wag an (S). 1020 Jimmy Young fS). 
1200 John Dunn (5). 2.00 pm Ed 

Stewart (S). 420 David Hamilton fS). 
SM News: Sport. 6.00 David Symonde 
with Much More Music (S). 8.00 

HuEcrt Gregg says I Ca'-I It Style (S). 

9.00 Listen to the Band (5). 920 The 
Org»m« Entertain* (SI. 9.55 Sports 
Desk. 10.00 The Loivdon Palladium 
Story with Max Bygrsvea 11.00 Brian 
Matthew with Round Midnight. 


1.00 am Truckers' Hour (5). 2.00-5.00 
You and the Night and the Music (S).. 

RADIO 3 


6.55 am Weather. 7.00 News 7.0S 
Morn-rig Concert (S). 8.00 News. 6.05 
Mcntrng Concert (con;.). 9.00 News. 

9.05 Th.s Week's Composer: Scriabin 
(S). 10.00 Beethoven Chamber music 
recital (S). 10-25 Songs From Four 
Countries (S). 1120 Midday Concert 

I SI. 1.00 pro News. 1.05 Six Con- 
tinents 1.2S Two Clarinets (S). 2.05 
BBC Singers at the Petworth Festival 
(SI. 2.55 Schubert string quartet 
rsc.ial (S) 3.40 Busoni and Beyond 

(Si 425 Jaz: Today (S). 4-55 News. 
5.00 Ma nly ler Pleasure (SJ. 7.00 
M.chact Gcid:hijrpe song rgrcitgl (S). 
7-45 Rcyal Liverpool Philharmonic 


Orchestra from the Philharmonic Hall. 
Liverpool,' pert 1: Welton. Sibelius (S). 
825 The Pantomime (short story by 
Olivia Manning).. 8.45 Concert. . part 
2 : Beethoven (S). 9.40 Majors n a: 

Disappearance ol- a Physicist (S). 
11.00 Newa. 11.CB-11.T5 Thomas 
Attwood (S). 


. RADIO. 4 . 

-6.0Q sm'News Briefing. 6.10 Farming 
Today. 625 Shipping forecast. 620 
Today. 8.45 The Widower by Georges 
Simanan. 9.00 Nows. 9.06 Tuesday 
Call (Jock Davidson, en expert on 
household plants answers questions). 
10.00 News. 10.02 Pres Our Own 
Carraspontfant. 1020 DaHy Service. 


10.45 Morning Story. 11.00 lfawn. '' 
11.05 Thirty-Minute Theatre. 1125 
Wildlife. 12.00 Ntws. 1102 prrf Yob" 
And Yours. 12.27 Quote-.-. . Unquote, 
i SI. 12.55 WastFar: programme nswg. ' 

1.00 The Vftrtd 31 One. 1 j« Til*. 
Arc'hcrs. 1.55' Snipping forecast. • 200 
News. -2.02 Woman's Hour. --3 l 80 
Nows. . 3-02 . Tcm Jcncs hv Henry. 
Floiding. -4.00 Places of P-.'gfUHgs. 
4.15 The Bogart Rte. 4.4S Story Time! 

5.00 PM: News -magazine. 5.50 Shipping-.' 

forecast. 5.55. Wrath a r pregrajama 
ne.Ws. '6.00 "News incljd'.ng FjnaKC 1 * 1 
Report. 6.30 Never -TCo Lite (S). 7.00 
News. -- 7.05 Tne Archere- 7.201 
Medicine -Now 720 The Black Sn .53 
(S).“ B2S"Anie>ny HopicTRe (SI. 9HS 
In Touch. 920 . Kj laid oscope. 9.59 

Wenther. 10.00 The World Tonight. 
1020 Nashville (S). 11.00 A Bccfc at 
Bedrwne; 1,1.15 riw Financial Wnrid 
Tonight. "-ITJO'RjiWr; La'tcrrfrbeau de" 

Coupon" (Si. 12.00 Nows. 









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Number4 


The first NadoniBank of Sos65EtanfiouriGK- Miami office for a confidendal apBoiniinenc 


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/vS aphs of pn '“ h,Btor y 9^ fora seiection ol the 
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the statistical information. 

. We ^ 3 Research and prtwidefiie foritsheeL You us^ybur 

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Japan, Part 2 


by DAVID PIPER 


The Great Japati .Esibj&ftion' 
at ;«* ■ Roy afl i AcadfflBT^aa the 
great exhabitionsuccess' of .1981. 
Some might .da&st priority for. 
Picasso's . Pieassde-: at ~\fl*e 
Haywardi-.^it ftar me^a greater 
mHtt jshrnftiy apct^deaiglit came . 
frmntiereTCiataons'trf ‘Japanese 
Art- The iScassos, e^tHordidaxy 
m tlito- brtlliant though 
tbey'Were,'-. were- also -essentially 
more Hcassos. Theshock of the 
unknown^. that ^ --another less 
successful' ^hoW at. tiie" RA-- 
f ailed to provide, “was provided. 
by:JApOSL 

-Except fee - - a-' - very few 
specialists, We ifl -the West have 
nevet- seen somerof the kinds of 
art- repretefited here at toeir 
finest— ahdve. aft' tfce : textiles, 
and aniosiesr -the; paintings, fee 
great -screens, and jdiftin g doors. 
Sven the Japanese have never 
been -able. 'to. see the master- 
pieces - in, khese aits In such 
concentration, enabling the 
spectator -to; .wander flircmgh a' 
whole, period comparing and 
assessing, quality staying the 
evolution of- : lhe. serious styles. 

■ In the brief vwefc of the 
Christmas closure, the exhibi- 
tion has . IjeOzi -' renewed pre- 
cisely; hi these: two most spec- 
tacular ofitx facets — the textiles 
and . file paintings. In Japan, 
major wo rites of - art are cate- 
gorised with, rigour, Irrespective 
of . ' their KHvnershflps. The 
b6&aviour bf objects, scheduled 
as National . Treasures, Eapon- 
taut- Cultural; Properties or 
Important Art- Objects is sub-" 
ject to rufesr not only as 
r egar ds; sale, abroad, for 
example, but as to exhibition — ’ 
not . more than 50 days.in a year, 
for conservation's sake.-- - 

The Japanese, besides paying 
the ; cirasiderabe costs of.. 
sssemMy and packaging within 
Japan; nave relaxed slightly this 
role, but nevertheless a switch 
was necessary half way through. 
The 'change over has been * 
accomplished with superb taste, 
and tn:a very large extent, like 
has beat replaced by like. For 
tKbse wjio 'saw Part i, one of 
the nrajor a^mshments o^ the 
first view may sot be quite 
repeated. It was timt -of scale. 

. Compared With western scales 
—the; great fresco cycles, the 
Sstine Chapel, .to take an 
extreme example-tlas may not 


■be so ex tr ao r dinary, .but 
Japanese -arts tend to be thought 
of as miniature — whether nct- 
siike, wro, or best known of 
an,, the woo^bloefc prints. ■ The 
screensare not oft finar big in 
vudgar metres, but id grandeur 
they are stu nning , fr t£em, th»t 
atoiHty to extract «ssentiaifffrom 
the lavish' stqjerfltutees of nature 
so marked in suraflef Japanese 
brash p aintingp , is^emonstrated 
at -what is somfetnjaek amonu^ 
mental patch. -Bar^^ftiv^he' 
history of art has so mtieh been 
lef t out to morefaMlled ; effect 

In one Ga8ie(ry . ; {^o -9) in 
Part I there was- shdwn dmpjy 
the huge TSger-by Ni^asawa 
Rosetau — ' its. .... taige length 
lolloped' qcrossdta.d^ (leav- 
w 4he Anal door btasfc but 
four fiie presence of fiie ends . of 
two wfttisfcei^ifesfia fcappiUy' in. 
Part U — and a pair of jjix-f old 
screens by iflairayama Okyo of 
two pines in snow. ..The latter 
were, in thrir impact, their 
audacity, astounk&ng: one- would 
not have'tlKJWght them fepiaice- 
able.Nor are they, and yet they 
are. v^oe. screens by 

the some artist, fids time a 
loose, open, knotfeig of wisteria 
L boughs bearing -« dotted drip 
of foliage and blossom, all over 
Hhe glow of the gold ground. 

This gofel is laid* as priming, 
over i!he 'screens, fits rectangular 
leaves - establishing a muted 
geometric grid over which (and 
otvrat the vertical edges and the 
angles of the partitions of ' the 
screen), file marvefflous lyric 
irregularity of ..bough and 
blossom wandeffs..- 

"Thi$ contrast, -of free., play 
over an austere -grid, is typical 
of. so much of the most pleasur- 
able-^ of Japanese screen 
paintixcg. A superb newcomer in 
Part;: II, Watanabe .Shiko’s 
“ Cherry ' Trees - ; oh Mount 
Yoshimp,” has again the softly : 
luminous .grid .of . the gold 
Leaves, and over them, like the 
silhouettes of great whales, the 
naked humps of file hills rising 
from a foam, of cherry blossom. 

Similar contrasts,, as of some 
mutant of Euclidean, geometry 
against the wilful -surge of 
organic if stiH stylised life,-' 
occurs in -the gorgeous textiles, 
claimed to be garments. The 
shapes of nuihalm, of kosode, 
though made to .clothe the. 




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Dragon of the storm, tiger with bamboo.-Kano Sanraku (T559-T635) 


h uman figure, reject, when 
stretched in uninhabited display, 
the idea of anything so soft so 
undidant as human flesh 
invading their perfection. Ulti- 
mately, this is what the Western 
eye may. find lacking in Japanese 
art, that acceptance in so much 
of pqst-Renaissauce Western 
Art, of the nude human figure 
as the .module. 

As you leave this exhibition, 
the glowing 1 nymphs in the 
Sebastiano Ricci paintings on 
the staircase outside, may strike 
in contrast as somewhat 
decadent, but then, perhaps 
reassuringly, as nevertheless 
somewhat comfortable. Yet the 
London City gent may also 
carry - :in his memory, a little 
wistfully, from this exhibition, 
the ravish in gly restrained yet 
crisply vital dark and paler 
blues patterned with faint 
white, of coats claimed by the 
catalogue to be for fishermen 
and' firemen. City gents may 
well envy, for they are the 
acme of sober aristocratic taste, 
as if the pin-stripe restored 


from emasculation. 

A few eyebrows were raised 
by the title when the exhibition 
first opened Great Japan, 
although it covers only the Edo 
period (1600-1868), when Japan 
sealed itself off from the out- 
side world. But any such pedan- 
tic quibbles must by now be dis- 
pelled. Certainly, the artistic 
greats of earlier Japan (in 
sculpture perhaps especially) 
are not there, but the assault 
on the senses leaves no sense of 
omission. This is quite enough 
to go on with. And. as exhibi- 
tion, as marriage between the 
objects exhibited and the 
decor in which they are dis- 
played, it is as near perfect 
in balance as any since the war. 

The Japanese Designer Kisho 
Korokawa had as collaborator 
Alan Irvine, and to the iatter 
was due also the very different, 
dramatic, but comparably suc- 
cessful staging in -19S0 of the 
Horses of San Marco at the 
Academy. Not the least remark- 
able aspect of the exquisite yet . 
practical tact of the installation 


is that, while 4,500 visitors have 
been flooding through since late 
October, it bears almost no 
signs of wear, -but remains im- 
maculate. * . 

Nor is the pressnre of people 
in fact oppressive: the articula- 
tion of display seems to absorb 
it — only about the very small 
items, the netsufee, is it difficult 
to see (and yet those almost all 
come from the British Museum 
— -though how many of the visi- 
tors to the RA have been able 
to see them -in the BM, one 
may well wonder). 

The exhibition continues until 
February 2i. A note on costs 
may be of interest. Overall, 
they are of The order of £2m. 
The Academy has to cover 
fljin of this from entrance 
charges. These (taking a deep 
breath) they settled at £3, 
though there are various re- 
duced or exempt categories of 
visitors. At the time, this must 
have seemed a very daring 
gamble; but it looks like suc- 
ceeding and if it does, any profit 
accrues tp the ever-beleaguered 
coffers of. the Academy. 


Letter from Italy 




Anna Bolena, Tancredi 


by, MAX LOPPERT 


JEtt Italy, taste far the* early 
operatic feuits of^tbe (Xtocenta 
continues L to flourish. On . this 
page over the past year or so, 
WiHiam Weaver has Imported 
on, ainoij&'otaer'lhlngs, revivals- 
of :»dcSi xmifies 'ap Donizetti’s 
Maria de Rudenz Cat Venice) 
and, receutiy T - his Fousts .(at 
Reihe);' for ah operatic traveler 
acrdsa Northern Italy an Decem- 
ber, the attractions were slightly ' 
more familiar- but . still (from 
tbh look of them) worth, noting 
— -a new production of Artna 
Bofeha to open the Turin season; 
and Rossini’s Tancredi, given at 
Venice in the 3,881 Axx Festival 
co-pzodiictimu Bofii' perf«aa* 
ances. In their entirely opposite 
ways; illustrated a familiar 
moral- — that without performers, 
of ‘interpretative - spark, such 
exercises become , matters of 
duty rather than pleasure. 

The Reg&o Anna Bolena fell 
with a. thud in the arena of duty. 
Mounted for: Maria ChSara (a ‘ 
soprano Wito. I feel, has never 
received her foil due in 
London), It must have suffered 


some degree of -strain, when 5S- 
ness forced her \ riflid r a.w al‘after ' 
the premiere, and thereby 
advanced the debut of'he young 
South American Adelaide Negri 
(scheduled to takeover-file title 
rote onfly in the last' periorm- 
anfce&'of the run). The voice 
is very interesting— ^veaJed, un- 
eveitiy registered, and not 
beautifid: at full stretdi, but 
.'agtie. sad. frit: uf coiouriatic 
potential, rather in file manner 
of the ynuog Lejta Gencer. fe 
th^ days before tfee mannerisms 
Took over.. .. - - 

“Bntrfiig-ass nnm fion of a role 
nS’lufig as;5tSs rich, and grand 
wag tie*, mtare than ®irie riceteb 
rib '".one. _ (St seams) has 
schooled her to draw on that 
potential, to do -more than sema- 
phore and, in the great Anal 
scene, to flop afobrit the floor in 
yftfltennegJSgde . and loose Socks 
of .hair.' -The talent deserves 
■better pxotoolion. 

; But the blame for an evening 
of; mostly unrelieved flatness 
must by no means be laid at 
her door alone. This was Italian 


opera-house routine' at Its most 
depressing — lifelessly con- 
ducted by Maurizio Arena, pro-: 
duced by Attilio Colonello, in 
his own decors of garish ugli- 
ness (South Bank-style angular 
vistas decked out in every- 
colburof-the-rainbow costumes), 
as if. to .demonstrate one by one 
the worst 1 feature of the sin- 
gers’-coUtrerzienze— all four prin- 
cipals (Boleyn, Se ymour, 
Leicester. Henry ViU) were 
offered their chances to seize 
the front of :the stage for stand- 
and-deliver/ and there were 
numerous “ signs” after solo or. 
ensemble for applause little 
merited. 

It was sad to see and hear 
the talents of the once- 
promising Maria T m &i Bardin 
Nave (Seymour) so much 
coarsened;- the travesty role of 
Smeton, in the dashing voice 
and bearing of Elena Zilio, was 
the only reliable bright spot 
For a Donizetti an of sometimes 
excessive enthusiasm, ever 
ready to rank Anna Bolena 


among the composer's highest 
achievements, such an experi- 
ence of the score given with a 
few cuts was a sad one — it 
was not long before longings 
for the heavily pruned version 
(such as Glyndebourne used) of 
the bad old days were faced and 
admitted in full. 

How different ■ Tancredi at 
the Feruce! Marilyn Horne was 
■mag isterial,, inimitable, and 
brilliant (even,, at times, 
enervatingly so) as - the warrior 
hero; Leila Cuberli was charm- 
ing, touching, and beautifully 
schooled (making the utmost 
of vocal means not always of 
the best quality) as the soprano 
heroine Amenaide; and there 
were notable contributions from 
the conductor Kalf Weikert the 
tenor Ernesto Falacio (too mild 
in personality, but admirably 
musical in relieving the agonies 
of the high tessitura), and 
Eleonora Jankovic as the con- 
fidante Is aura (leaving echoes, 
in her single air. of the young 
Cossotto). The Fen ice orchestra 



sonnded wonderfully responsive 
to the felicities of invention 
lavished upon it by the young 
Rossini in full exuberance; in 
particular, cor anglais, bassoon, 
and low strings all had to be 
relished by the visitor for their 
native colour and style. 

I am in two minds about the 
work itself. The music is won- 
derful, but the- plot is feeble — 
dramatic interest seemed to 
have ebbed away- long before 
we actually left our seats for 
the last time. As at Aax (when 
the production was described 
in these columns by Rodney 
MUnes), the tragic ending that 
Rossini wrote for Ferrara as an 
alternative to the Venice lieto 
fine original was used— and, 
drawn out by Miss Horne to 
considerable -lengths, it felt 
something of a trial even while 
one recognised the striking 
innovations described in the 
programme' by' -the Rossini 
scholar Philip Gossett:. - But.it- 
was a happy evening all the 
same. 

The production (by Jean- 


dande Auxray) and designs 
(by Mauro Pagano) may include 
some passing fashionable 
follies, but for their salute to 
the picturesque, nature-roman- 
tic side of Rossini's imagination 
much could "bo forgiven. And to 
be in the most. beautiful opera 
house in the world, listening to 
Rossini delivered with both 
seriousness and virtuosity, is no 
hardship. 


Royal gala far 
. ‘The little. Foxes’ 

A Royal gala performance of 
Lillian Heilman’s The Little 
Foxes, in which Elizabeth 
Taylor is making her London 
stage debut, is to be given at 
the Victoria Palace on March 
9. The occasion is in aid of 
the England team for the Com- 
monwealth Games appeal and 
tickets -priced £50, £25 and £15 
are obtainable from Trusthouse 
Forte, 8fr Park Lane, London 
W 1 A 3AA .(cheques payable- to 
Commonwealth Games Council 
for England). . 


Young Artists 

by DOMINIC GILE 


The exercise would not have 
been possible without the spon- 
sorship of the Midland Bank In- 
ternational and its associates. 
The general public perhaps 
does not realise how such spon- 
sorship works. Rarely in this 
sort of project, does it consist 
of the sponsor putting down so 
many thousands on the table: 
rather, he guarantees against a 
certain level of loss. He under- 
writes a risk, but when there is 
no loss— what elegant profit ! 

From Great Japan, there 
should accrue a prestige adver- 
tisement of the greatest 
glamour for the sponsors at no 
cost whatsoever. Potential 
sponsors' in the arts, please 
note, but do also remember the 
credit that may be laid up for 
you in heaven by a straightfor- 
ward surrender of cash, by 
unconditional sponsorship of 
those activities for which the 
Academy like other institutions 
can never find sponsorship: the 
m'undane day-to-day running 
costs, the keeping of body and 
soul together. Remember 
heaven ? 


_ After an uneventful start last 
week, the Park Lane Group’s 
annual series of . concerts 
devoted to Young Artists and 
20th-century music improved as 
file days went by. Thursday 
gave us file fine accordionist 
Mario Conway; and the final 
evening on Fan day presented . 
the contralto Catherine Wyn- 
Rogers, another young artist 
whose presence entirely justi- 
fied the slippery trip through 
the snow. 

Miss Wyn-Rogers began a 
little stiffly, with accounts of 
the first two of her group of 
flve'Bartok songs op. 15 that 
were more stolid than solid 
(even sharpened as they were 
by unusually: dear and accurate 
Hungarian pronunciation). But 
she soon opened up : the rest 
of her Bartok group, and Berg's 
Four Songs op. 2, revealed a 
warm, rich voice of splendidly 
dark and alluring colour, excep- 
tionally even throughout the 
range, and very well tuned. As 
As the evening progressed her 
confidence continued to grow. 
She gave Schoenberg's little set 
of Three Songs (dating from 
1933, misleadingly numbered 
op. 48) and Poulenc's Le 
Bestaire with marvellous ease 
and authority — and the 
Poulenc especially with a 
serious charm that owed nothing 
to coyness. 

Between whiles she also sang 
Green Bushes, an elaboration 
for voice and piano by Michael 

Elizabeth Hall 


Finnissy based on the folk song 
of the same name : weird and 
rather attractive piece* a study 
in oppositions deriving from the 
same basic material, whose 
melodic, line has a distinctly 
early-Boulez cast Come to that 
Td like nothing better someday 
than to hear Miss Wyn-Rogers 
sing Boulez's Marteau. 

She shared her programme 
with John Kenny, a trombonist 
Solo trombone recitals invarii 
ably suffer from the inescapable 
fact that the repertory for the 
instrument from most past 
periods is non-existenti and 
from tiie present-day largely 
second-rate. Jacob Druckznan’s 
Animus I for trombone and 
tape has been regularly brought 
out of the drawer and dusted 
off for trombone recitals these 
past 15 years, and it sounds no 
more provocative or exciting 
today than it ever did. Vinko 
Globokar’s Discours 2 for the 
same combination (and from 
approximately the same vint- 
age) is one among dozens of 
that composer's characteristic 
bitty, highly strung and physic- 
ally exhilarating essays that are 
fun for five mioutes and end- 
less at 20. George Nicholson's 
new Slide Show for solo trom- 
bone proved to be a curiously 
limp sequence, some 14 minutes 
long, of little (mostly) plaintive 
cameos using different mutes. 
It had the welcome virtue, how- 
ever, of being a piece for trom- 
bone which is not for once 
wholly aggressive and mainly 
loud. 


Apollo by PAUL' DRIVES 


Sunday’s concert by Apollo 
Contemporary Music — a group 
founded and directed by David 
HelleweU — was mainly ' a 
demonstration of the “per- 
formance and notation system" 
HelleweU himself has devised 
for use with EMS sound- 
synthesizers enabling them to 
function just like any other 
instrument in an ensemble, and 
removing the need for Inter- 
mediary tape recording. His own 
Electronic Studies, for synthe- 
sizer and piano, receiving its 
premiere like four of the other 
five items in the all-British pro- 
gramme, was quite successful in- 
creating a sharp edge of conflict 
between the familiar behaviour 
of the piano and electronic 
sounds which, not unusual in 
themselves, had an unfamiliar 
dynamism and spontaneity. 

The musical invention as 
such had less interest, though 
not so little as Mr Hellewell's 
other _ offering. Mythologies 
(Japan) for narrator (Sean 
Street) synthesizer and 
ensemble, the first of a pro- 
jected series of works dealing 
with tiie mythology of some 15 
cultures as described in a glossy 
book by Veronica Ions, The 
prospect is alarming if “Japan " 
is typical: lengthy recitation 
of bald facts against vapid wisps 
and c lim a x es to no conceivable 
musical purpose. There is an 
option on slide projection and 
adaptation for TV: eventually 
the subject matter takes over 
— but a piece had hardly been 
made of it in the first place. 
Nigel Osborne's Viert no-Zurich 
Constance, substiJuted for sn 
unfinished new work by Justin 
Connolly, was instructive in 
comparison. Equally unlikely 
in source-material — a poem by 


B. M. Thomas about the last un- 
meeting of Freud and Jung — 
it deployed narrator and five 
instruments with neat wit and 
attractive style. 

The young composer Gordon 
Downie's Ground Stale achieved 
surprisingly disciplined inte- 
gration between a solo synthe- 
sizer and a cimbalom-tinctured 
ensemble. Fresh, vigorous, 
agreeable ideas delicately 
floated, Boulez-fashion, in space 
and made for hypnotically 
pleasant listening, inevitably 
the cimbalom upstaged the elec- 
tronics. Edwin Roxburgh’s 
Elegy m memory of Janet 
Craxton also drew discreetly on 
electronic resources, using them 
as enhancement for a solo oboe’s 
multiphonic effects and bridge 
between oboe and the intense 
canonic music of a small en- 
semble. With the composer as 
soloist it was a taut threnody 
indeed. ' 

. David Bedford's Vocoder 
Sextet was a pop-playful exploi- 
tation of a machine, the 
vocoder, whereby a vocal signal 
can effect a modulation of 
instrumental sound. The narra- 
tor simply described what the 
very straightforward music was 
doing, counting the beats and 
so on, and gave great encourage- 
ment to anyone who likes to 
hum along with music. 


Eric Idle’s 
first play 

Pass the Butter, a first play 
by Erie Idle of the Monty 
Python team, opens in a pro- 
duction by Jonathan Lynn at 
the Globe Theatre Dn January 
26. The cast is led by William 
Kushidn, John Fortune, 3Iadge 
Ryan and Peter Jones. 


F.T. CROSSWORD 

ACROSS 

1 Motion to brook no comeback 

< B > . ^ .. 

4 Standard drug found m basis 

of soup (5-3) 

10 Self-restrained, having rage 
consumed (9) 

11 Row I -pry around (5) 

12 Cross a pole (4) 

13 Severely criticise chief pro- 
ducing a large fish (10) 

15 Bribed soldiers in- squad (7) 

16 Cutting implement — 
occasionally moon-shaped (6) 

10 Debate about a male off- 
spring (6) ' 

21 Timber to dtop for engraving 
(7) 

23 Short paragraph before a dis- 


aDQQQHSQ QEQaSQ 
0 0 IQ B 13 13 E- @ 
bhhbh annEi0aani0 
E)DElQEia0-0 

QEQQmaBaB asssn 

S E Q B 0 S3 03 
cjnaaaia EQuuanjaa 
a a a b a s 
BBSSHQS 

E S3 B S E 'Q s 

EaaSEJ S3EB0S3HE 
aaacHEiQO 
EssoEEiEsa oESnaa 

BQSHDQQH 
EBOBHa BHaanmaH 


PUZZLE No. 4,769 

sertation in apposition (10) 

25 A lot of fish put right inside 
tin (4) 

27 Artefact from barrel I 

cracked (5) 

28 Engineers in aircraft and 
boat (0) 

29 Be nauseated with fish in 
Plant (8) 

30 The time I'd fray around the 

• edges? (6) 

DOWN 

1 Support nevertheless with a 
lock (8) 

2 Self-possession needed to put 
cement on stable (9) 

2 Free to begin and speak out 
(4) 

5 A container for mother's 
mixture (7) 

6 Get less gold from a builder 
( 10 ) 

7 The cost of soft grain (5) 

8 Finish in attempt to be 
fashionable (6) 

9 Risk an accident one of 
many on a golf-course (6) 

14 Female supporters with 
heaps of business details to 
get down to? (5, 5) 

17 Tore ornamental fabric and 
scolded (9) 

18 Fish straying wildly (5-3) 

20 Necessary requisite (7) 

< 



21 Attendant and I must appear 24 One who, or that 

in tears (6 j should produce a line 

22 Essence that is still made 26 A fish in jelly i-4i 

(6) Solution to Puzzle So. 







Financial Times Tuesday January 12 1982 


FINANCIALTEMES 

BRACKEN HOUSE, j CANNON STREET. LONDON EC4P4BY 
Telegrams: Finantimo, London PS4.Tefex: 8954871 
Teloohone: Ot-248 8000 • 


Tuesday January 12 1982 


Nato unites 
on Poland 


THE 16-point declaration issued 
after yesterday's meeting of 
Nato foreign ministers cannot 
be counted on to have any 
immediate or decisive impact 
on the unfolding of the Polish 
crisis. But it does represent a 
firm restatement of ‘Western 
values in the face of the 
repression in Poland. It main- 
tains a statesmanlike balance 
between pressure on the regime 
in Warsaw, and warnings of 
further sanctions either against 
Poland or against the Soviet 
Union if the situation does not 
improve. 

On the positive side, the 
ministers have said they would 
maintain or increase food and 
other humanitarian aid, pro- 
viding there were clear 
guarantees that it would reach 
tiie Polish people, and not be 
used simply as a device far 
-political manipulation by Gen 
Jaiuzelski.. and the Military 
Council. 

In the harsh winter weather 
■now affecting much of Europe, 
help of this kind is an absolutely 
essential ingredient in the 
policy of any Western govern- 
ment which wishes to exoress 
its support for the most basic 
human rights of the Polish 
people. At the most fiwnda- 
mental level, food, clothing and 
medicines are a more pressing 
need than the restoration of 
civil liberties. 

Negotiations 

On the negative side, the 
decision to sheh r e the granting 
of any new trade credits f other 
than for food) and to postpone 
any negotiations on the re- 
scheduling of those Polish d?hts 
to western governments which 
fall due this year, should bring 
cumulative pressure to bear on 
the Polish authorities. The lack 
of new western credits in par- 
ticular should exert a progres- 
sive squeeze on the Polish 
economy, though it may also 
intensify Poland's dependence 
on the Soviet Union for the 
provision of hard-currency 
credits. 

The postponement of the re- 
scheduling negotiations will be 
slower to have an effect — the 
rescheduling of the 1381 govern- 
ment-to-sovomment debts was 
not completed until the spring 
of last year — but Poland and 
the Soviet Union must both he 
aware that any deterioration in 
the current situation lust could 
provoke western governments 
into calling in their Polish 
loans. Such a move might be 


materially self-defeating, since 
Poland could not pay up, but it 
would have an even more cala- 
mitous effect cm the credit- 
worthiness of all Comecbn 
countries. 

In relation to the Soviet 
Union, the western position re- 
mains much less clear-cut. 
While they achieved a m«h 
greater degree of unanimity in 
recognising and condemning 
Soviet responsibility in the 
Polish crackdown than seemed 
likelv only a short while ago, 
tiiey' did not agree on the 
immediate Imposition of new 
sanctions against Moscow. 

Disagreement 

One reason may well be that 
there is still disagreement on 
the extent of Soviet responsi- 
bility: another that the options 
previously worked out in Nato 
were designed as a response to 
an eventual Soviet military in- 
tervention. AH the Nato 
governments now need to study 
more finely graduated forms of 
economic pressure which might 
be activated if -the Polish 
situation does not improve. 

One of the problems with 
trade sanctions is that they are 
hard to maintain over long 
periods and the nunrimmn 
impact is achieved immediately 
by restricting goods which are 
needed urgently. This is usually 
taken to imply that the main 
burden of imposing effective 
sanctions lies on the U.S., with a 
preponderance of cereals in its 
exports to the USSR. The com- 
munique Implies, however, that 
this burden would have to be 
more evenly shared, with curbs 
on U.S. cereals exports being 
balanced by curbs on European 
imports of Soviet energy. 

Restrictions 

The U.S. curb on high tech- 
nology equipment might well 
have a major: impact on the 
planned gas pipeline, and thus 
on Soviet bard currency earn- 
ings, but only if it were to be 
maintained indefinitely and if 
western European governments 
were indefinitely to refrain from 
undercutting these U.S. restric- 
tions. 

The decisions and the warn- 
ings of Nato are unlikely to 
produce any instantaneous 
results. But at least the west 
has achieved a subetantail 
measure of a common approach, 
and should be in a better posi 
tion to respond to the situation 
in Poland as it evolves. 


LONDON’S THIRD AIRPORT 


The battle of Heathrow 


By Michael Donne, Aerospace Correspondent 


A S THE public inquiry into 
the proposed develop- 
ment of Stansted as 
London's third major airport 
plods on, it is becoming clearer 
that the biggest battle to be 
fought will be whether Stansted 
should be rejected in favour of 
building another trig passenger 
terminal at Heathrow— 1 Ter- 

minal Five (or T-5). 

This issue has already sharply 
divided much of the UK civil 
aviation industry. The British 
.Airports Authority wants Stan- 
sted to meet expected traffic 
growth well into the next 
century. British Airways, which 
accounts for close to 50 per cent 
of all Heathrow traffic, wants 
T-5. and is strongly opposed to 
Stansted. 

Lining up behind them are 
many other lobbies. The 
environmental groups round 
Heathrow feel T-5 must be 
fought at all costs. Comparable 
groups round Stansted believe 
that its expansion must be 
stopped at all costs. The Utiles- 
ford District .Council, in which 
Stansted lies, wants T-5. Many 
airlines which use Heathrow 
are also backing British 
Airways. 

Those airlines believe that 
shifting all or some of their 
activities to Stansted will add 
millions of pounds a year to 
their costs. Provincial airports, 
and the airlines serving them, 
feel the money lor either Stan- 
sted or T-5 would be better 
spent on boosting air travel to 
and from the regions. 

A subsidiary planning appli- 
cation by the Town and Country 
Planning Association for the 
resurrection of an airport on 
reclaimed land at Maplin off the 
Essex coast seems likely to be 
swampted by this larger battle, 
as does another plan, for an air- 
port on Sevemside. The latter 
might be suitable for a new air- 
port to serve the West Country, 
South Wales and a large part 
of the South Midlands, but it 
does not seem to be attracting 



Thrusting into the 
western end 
of Heathrow 


A new approach 
to anti-trust 


centra tion of economic power 
posed a danger to democracy. 
This line of thought provided 
the moral staying power for the 
IBM case. 


TWO IMPORTANT decisions 
taken by the Justice Depart- 
ment in Washington last Friday 
epitomise the changed attitude 
towards monopoly power of the 
U.S. Administration. After 12 
years, the Department's anti- Allowances 
trust suit against International Under Reagan, the U.S. Gov- 
Business Machines has been emmerrt has re-emphasised the 
abandoned. American Tele- purely economic justification 
phone and Telegraph is to be for competition and believes 
shorn of its monopoly position that big companies can be just 
as a supplier of telephone ser- as much creators of competition 
vices and will thereby be un- as threats to it The Justice 
leashed as a full competitor in Departinent is now inclined to 
the fused businesses of data make adfowances for rapid 
processing and communications, growth, rapid technological 
The message behind both change and intense foreign com 
these decisions is that the Reagan petition before accusing any big 
Administration welcomes the company of market domination, 
prospect of big and powerful It is inclined to believe that 
businesses challenging one the majority of conglomerate 
another and their overseas com- mergers do good by shaking up 
petftors, particularly if they passive managements. On the 
have grown powerful through other hand it has also detmon- 
their own merits, and provided strated — by pmning AT and T 
that no restraint of trade is nsed and by preventing Mobil‘s bid 
In the preservation of their . for Marathon Oil — teat it still 

maintains that market domina- 
tion at the level of the consumer 
needs to be restrained. 

This harder-nosed approach 
to monopoly law is a logical 
accompaniment to the capitalist 


power. 

Competition 

This marks a clear departure 
from the fashionable trend of 
anti-trust thinking which 


developed during the 1970s— system’s quest for the growtii 
ttort - bigness ” in any company ** has gone: many of the UA 
was culpable in itself, whether ama-trustsuits 1970s 

tSt sire dominated a sinele p r esn ««j*i * . tetHswnfortab le 
market, controlled the produc 
tion and sale of a single product 
from raw materials through to 

ST SmelL* 00 * ^ 

ArC.™ if U.S. anti- ^ “ 

trust law. the Sherman Act, is tn» tot in an rater- 

designed to ensure that competi- dependent wnrid canjpetrhve 
tion is allowed to exert itself 

as the basic fore controlling rdatron to - *« countries that 
derision Inking in American 
business. The changing 
Interpretation of the Sherman 
Act involved a changing per- 
caption of why competition 


Vigilance 

Hie important coroHary Is 
that competition in a modern 


should he spewed to exert such Western country is preserved, 
control. The “big is bad" not by recreating fragmented 
school concentrated less on the markets, but only by ceaseless 
classic _ economic case for vigilance of powerful oompwtieg 
competition — (hat tt leads to by the anti-trust authorities It 
the best, allocation of scarce is largely because of sin* 
resources— and focussed more vigilance that small computer 
on political and social companies can innovate under 
arguments. IBM’s price umbrdia. . or 

Washington grew concerned develop alternative products 
that a growing proportion of using the pfao to grapitnc stan- 
Am erica's industrial assets were dards set de facto, by Kodak, 
controlled by a 'dwindling Success in business should be 
number of large companies. It allowed to lead to “ bigness,” 
contended that_ big companies but the policing against price- 
were unresponsive to the needs fixfidg, predatory pricing, and 
of the community and of the denial of .market access wingfr 
individual and even that con- go on as rigorousBy as ever. 


much enthusiasm as a third 
airport for London. 

The site British Airways 
wants for T-5 is Perry Oaks, a 
264-acre area not much smaller 
than the present Heathrow 
Central area itself, thrusting 
into the western end of Heath- 
row between the existing run- 
ways. 

ft is used at present by the 
Thames Water Authority as a 
sewage (sludge) disposal works, 
serving much of the population 
of West Middlesex. To take it 
over for T-5 would mean build- 
ing a new sludge works before 
the TWA quit Perry Oaks and 
any work on T-5 could start 
This means T-5 could not be- 
come operational before 1989-90 
at the earliest, and perhaps 
even much later. 

By comparison, the British 
Airports Authority claims that 
given permission to go ahead, it 
could have the Stansted ex- 


pansion operational by 1938, 
with a new ter minal capable of 
handling up to 15m passengers 
a year. 

Nobody disputes that Perry 
Oaks is a good site for a ter- 
minal— had the sewage works 
not been there, a passenger 
terminal would probably have 
been buflt on the site long be- 
fore now. It would have good 
road access now that the M-25 
is being built along the western 
edge of Heathrow, and the 
underground rail link into the 
Central' Area could be ex- 
tended to the new terminal. 

British Airways argues that 
the additional 15m passengers a 
year T-5 would handle, .would 
raise Heathrow’s capacity to 
about 53m a year (the present 
terminals handle 30m and the 
new T-4 now being built is 
expected to handle 8m). These 
passengers, says the airline, 
could all be handled within the 
Government’s ceiling of 275.000 
aircraft movements a year at 
Heathrow by making more use 
of bigger aircraft. 

As to the type of terminal 
involved. British Airways likes 
the Atlanta (U.S.) configuration, 
a central terminal building 
linked to - a series of concourses 
at which tbe aircraft stand. But 
wherever the third airport goes 
—Stansted or T-5— there is 
virtually a dean sheet of paper 
on which to draw any kind of 
terminal The only criterion is 
that it should be the finest in 
the world, embodying every- 
thing to make the throughput of 
passengers fast smooth, com- 
fortable and cost-effective— a 
combination rarely found in any 
airport terminal ait present 
The argument over need 
stems from differing views 
about the rate of growth of air 
travel into and out of the 


London area over the next 10 
to 15 years. The British Air- 
ports Authority believes that by 
1995, it will have reached about 
87.2m passengers a year, while 
British Airways suggests a 
lower figure, 73.4m. 

The airline further claims 
that by developing Heathrow 
to about 53m developing Gat- 
wick from the present 16m to 
25m (by the addition of a 
second te rmin al for which 
approval is awaited) and by 
allowing Stansted to go -to 4m 
and Luton to 3m, there will be 
total London area capadty in 
the mid-1990s of about 85m pas- 
sengers a year. 

This would be enough to meet 
British Airways forecast. Even 
if the second Gatwick ter min al 
were denied, cutting out 9m of 
capadty, there would still be 
enough capadty (at 76m) to 
meet the airline’s projection. 

The Airports Authority 
disagrees. It argues that to 
develop T-5 instead of Stansted 
would be to damp airport 
development in the London 
area into a strait-jacket 
Eventually, in. the late 1990s or 
into the next century- the whole 
London airports problem would 
have to - be reopened when 
saturation of T-5 was reached. 
By developing Stansted now to 
15m passengers a year, and 
making prudent provision for 
further development perhaps to 
50m a year, with a second run- 
way, as demand requires, that 
problem would be avoided. 

As to costs, British. Airways 
daims it would be much 
cheaper to build T-5 than 
Stansted. The accompanying 
table sets out the airline’s 
claims, based on 1979 prices, 
which must be substantially 
adjusted upwards to allow for 
inflation. 


British Airways also, daims 
that if it were obliged to go to 
Stansted its additional operating 
costs would amount to between 
£130m and £170m a year. It 
bases this view on its experi- 
ence at Gatwick. 

The airline was required to 
transfer some of its Spanish 
and Portuguese flights to Gat- 
wick while the foreign airlines 
managed to stay at Heathrow. 
As a result British Airways 
lost 20 per cent of its business 
to Iberia and Air Portugal and 
is now trying to switch hack 
to Heathrow. The other air- 
lines fear that much the same 
could happen to them at 
Stansted. 

The Airports Authority 
counters that Gatwick is now 
building up rapidly, with traffic 
up 10.2 per cent in the past 
year to more than 10.6m, and 
that more and more foreign 
airlines are moving there — 
hence the need to expand even 
Gatwick with a second main 
terminal. 

However, there are marked 
differences of view between 
British Airways and the Thames 
Water Authority over the 
timing of any relocation of the 
Perry Oaks sludge works — even 
if Thames Water wanted to 
move, which it does not 

British Airways argues that 
if a decision to drop Stansted 
and go for T-5 were to he given 
in 1983. Thames Water could 
start immediately clearing at 
least the southern part of Perry 
Oaks, so as to vacate it by 1986 
or even earlier (with a new 
rite for the sludge works found 
and agreed by 1985). Work 
could begin on the terminal in 
1986 with an operational target 
of 1989-90. 

Thames Water disagrees. In 
its statement to the Stansted 
inquiry it says that to safe- 


guard its own position and that 
’ of its customers, it could not 
and would not start to clear 
even the southern part of Perry 
Oaks until a new site had been 
found, with fun planning con- 
sent obtained, together with ail 
the financial guarantees it 
would need to cover the costs 
involved. 

This “decision to proceed," 
says Thames Water, could not 
be before 1986. Allowing one to 
three years for southern site 
clearance, this means that work 
on T-5 could not start until 
some time between 1987 and 
1989, so it could not become - 
operational until 1990-92. Hie 
rest of the Perry Oaks site 
would take several more years 
to dear, so that the whole site 
could not become available for 
aviation until well into the 
1990s. 

Thames Water's view is that 
this is the “ minimum time- 
scale,” and that any delay in 
achieving planning consent (and 
the financial guarantees) for a 
new sludge works elsewhere 
“could extend the timescale 
considerably.” 

Most’ people outside aviation 
believe it would be better to 
leave the sludge works where It 
is: no one is likely to want it 
dumped on his doorstep. 
Thames Water has no alterna- 
tive site in mind— it is not even 
looking for one, and does not 
intend to, believing this is the 
job of those who want to take 
away Perry Oaks for other 
purposes. 

British Airways has now re- 
vealed that two possible alter- 
native sites for the Perry Oaks 
sewage works could be near 
Dorney and Eton Wick, dose 
to Slough, or at South Iver, 
between Golnbrook and the M-4 
motorway. Already, strong 


objections to those sites . are 
emerging, and the public out- 
ay against' moving the Perry 
Oiks sewage wadis is bound to 
escalate, leading to an inevit- 
able public inquiry if the Stan- 
sted toquay itself results in % 
decision favouring T-5. 

Under such circumstances, 
British Airways* timescale for 
T-5 would seem to be optimis- 
tic, to say the least. Against 
this, the Airports Authority says, 
it could get Stansted operational 
by- 1988 once approval for it 
were given by the Government 

(probably late, in 1983). 

Thames Water has also made 
it plate that ft would reqtare 
others— the airline or the Air- 
ports Authority — to pay for tee 
cost of finding a new site for 
the ■ sewage works, getting 
approval for it, and building it 
together wftb any additional 
operating costs that mi g h t 
arise. Tins cost is put at £60m 
at 1981 prices, and probably 
£ 10 Qm by the time it came to 
be briHt in the nrid-to-late - 
1980s.. The Airports Authority 
would probably have to softer 
that bill, on top of the cost of 
T-5 at about £25Gm. 

Moreover, Thames Water has 
said that if the valuation of 
Perry Oaks turns out to be 
higher than originally thought, 
any such difference would 
accrue to Thames Water, not 
the Airports Authority or any- 
one else. This means teat the 
Airports Authority could -find 
itself .saddled with an even 
higher burden of expenditure, 
putting a different complexion 
onto the comparative estimates 
for T-5 and Stansted. Not sur- 
prisingly, tee Airports Author- 
ity is totally hostile to tee 
whole idea of T-5. 

British Airways says teat, as 
tee biggest single user of 
Heathrow anyway, it win be- 
paying in the long run for T-5 
through tee landing fees and.-' 
other charges imposed, upon it 
fty 'the Airports Authority. • 

Whichever way the Inspector 

Someone, somewhere 
is going to be 
bitterly unhappy 

at tee Stansted inquiry settles 
tbe issu& — and the detailed 
arguments are likely to come 
forward sane time in the next 
few weeks —-someone, * some- 
where, is going to be bitterly 
fcnhapjyjrafcouf it:' 

The entire London airports 
problem has been left so long 
with no coherent decision-taking 
teat it has now become virtually 
impossible to solve it at all. 
without draconian measures. - 
Maplin was an attempt to do 
teat, but was cancelled for 
political reasons in 1974. • - 

Some observers see a s imilar , 
danger overhanging the &sar) , 
sted inquiry, especially since a 
decision by tee Government trill ■ 
be needed around tee time of a. 
run-up to tee General Election 
in late 1983 or early 1984. Air- 
ports are politically unpopular, r 
but this time, something will' 
really, have to be. done— and- 
adhered to. - 


Men & Matters 


Stern words 

Joel Stern of Chase Financial 
Policy is back in town, still 
sporting Ids famous “earnings- 
per-share don’t count " -tiepin, 
and bringing a sample challenge 
for top corporate executives: 
“ You give me an hour of your 
time, four times a year, and PH 
keep you up to date with tee 
most important, pate-breaking 
research work.” 

It isn’t actually quite teat 
simple, of course, since Stern is 
also asking punters to give him 
81,000, four times a year, as 
well In exchange comes tee 
Chase Financial Quarterly, a 
new publication designed to lay 
tee best academic research on 
financial topics conveniently 
before the businessman. 

The publication will certainly 
rank among the world’s most 
exclusive publications, with a 
planed circulation of just 40 
copies in its home- country — 
putting ft just ahead of tee 
Politburo minutes. So it will be 
a cavalier CEO who leaves his 


Betel 


CFQ lying around among tee 
National Geographies. 

Lucky Europe is now bring 
given a dhance to supply 40 sub- 
scribers of its own— all of whom 
will be invited to meet tee 
writers of the six most timely 
CFQ articles at an annual con- 
ference. 

The cover price may be 
steep, but Stern is confident 
teat he can supply the quality 
goods. Contributors, he says, 
have to be skilful communica- 
tors as well as proponents of 
“ outstanding scholarship ” — 
one Nobel laureate is said to 
have had a contribution 
rejected on the grounds that lie 
wrote gibberish. And by way 
of encouragement ? “We pay 
them three times what tee WaH 
Street Journal offers.” 


and 


export potential for us to 
develop, ” he says. 


he remains a consultant there. 

The future? Levine expects to 
spend a fair amount of time 
on business deals in the United .z . 

States— and there may even be Tyring WOrk 
a second novel on the way 0 ° 

before too very long. 




“ With.' 'an English sounding 
Welshman standing for a 
Scottish seat they’re trying to 
bo ad things to all men!” 


Green paper 

Legal eagle Eric Levin is 
abandoning the ponderous 
prose of hfe profession for what 
sounds like 'an altogether racier 
type of language. He is putting 
the finishing touches to his first 
novel “The Venus Fly Trap,” 
due to he published by 
Hutchinson in the Spring. 

So far from being a work of 
botanical scolarship, Levine’s 
book takes as Us theme the 
power of- the Pres6. The title 
was plucked out of a book of 
erotic plants one - leisurely 
afternoon: “I Eire it because It 
sounds erotic,” says Levine, 
“yet it accurately describes 
what happens to the victims of 
the Press." 

He wHl be looking through 
his fictional- medium at the 
“people who try to control (tee 
Press), the corrupting effect of 
power on the people writing for 
it, and also on thqse who are 
beholden to both proprietors 
and writers— politicians in par- 
ticular.” 

Levine is probably best 
known as the solicitor who 
acted for Sir James Goldsmith 
in bis litigation against tee 
magazine Private Eye. He 
retired ait 45 from tee Lincoln’s 
Inn Fields firm which bears his 
name last November, though 


Positive vetting 

Bill Hughes has spent most of 
six years as chief executive of 
Grampian Holdings, tee Glas- 
gow-based transport to winter 
woollies and sports equipment 
group, in reducing its multi- 
farious activities. 

His first investment venture 
now takes the group into yet 
another new field — though one 
all too familiar to Hughes him. 
self. The veterinary medicine 
business which Grampian is buy- 
ing from brewers Guinness for 
£lm cate was largely put 
together and developed by 
Hughes a decade ago. 

Hughes began a career as a 
lecturer in pharmacy at Heriot 
Watt University in Edinburgh 
before going into business as 
partner in a firm of retail 
chemists in Falkirk in the late 
1960s. 

Tbe firm got involved in 
animal medicines— and turned 
to Guinness for help in its 
expansion. A joint company was 
formed but within a couple of 
years, Hughes was fully 
immersed in tbe Guinness 
veterinary operations, becoming 
chairman of two of tee com- 
panies he is now buying— HMC 

manufacturing chemists and 

trading company C-Vet — before . 
joining Grampian in 1976. 

Hugies, who was revisiting 
old C-Vet colleagues in Bury St 
Edmunds yesterday, tells me: 
“When I left Guinness. I told 
them that if ever they thought 
of selling the companies, 
Grampian would be Interested.” 

Tbe deal will be good for 
them' both, he says. Hughes has 
been pulling Grampian out of 
activities where performance is 
too closely tied to tee ups-and- 
downs of the economic eyrie. 
“Animal medicines isn’t like 
timt— and I think it has great 


Dunlop brought its present 
managing director, Alan Lord, 
in from tbe Treasury — and it 
evidently likes the quality of 
HM Government merchandise. 
For its new corporate planning 
general manager is Rosalind 
Gilmore, to be privatised on 
May 1 after IS months as head 
of the Treasury information- 1 
division and Press secretary to 
tee Chancellor of the 
Exchequer. 

Gilmore worked for Lord 
between 197? and 1977, and 
later grew .to know a number 
ot people at Dunlop through 
that connection. Came an 
attractive offer, and, she ex- 1 
plained yesterday, she began to 
think that "maybe one isn’t 
going to be a civil servant for 
tee rest of one’s life.” 

“ Absolutely none whatsover," 
she replied when I asked 
whether her move reflected any 
unhappiness with tee Treasury, 
“it was the positive attractions 
of the other job ” Those will 
include a pay rise but "not a 
vast amount" 

Gilmore was particularly 
closely involved with drafting 
the 1979 Banking Act before 
which her careen: had included 
spells as private secretary to 
Lord Lever and an appointment 
with tee World Bank, Almost 
as pertinently for her new job, 
tee is a noted squash player, 
as vast a consumer of rubber 
balls and athletic shoes as 
Dunlop is a producer. 

Firm bond 

Discount house Smith St Aubyn 
may have got itself into a spot 
of trouble by hanging on to its 
gilt-edged holdings as* they 
plunged by 12 points — but at 
least it was true to its company 
motto, Tennax in Fide, which 
I render roughly as "hold on 
in good faith." 


& POOR'S 


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Observer 





17 


S. . 


■ . ' -- -••••• 


MONOPOLIES COMMISSION REPORT 


Lombard 




Bank poser for Cabinet 


THIS . TKORsbAisS^’^i^e' 
a critical day ’ for 

the Royal- Baal£^:S«tiaBd 
group. The. Roy^Ba^ifcoard 
faces angry sbaa^BdeBS a^ ite . 
annual . ^geaecjaf V meeting * nr 
Edinburgh^ -fc also 

expected to tiptoe, day , of the 
Cabinet decEsion 'oB tJie Mono* 
poBes and JjfSfcgiers Commas-, 
siqn’s . : (MSC); j fi®#ibgs Jed- the 
rival bads teS^co^odJ^taggest 
bank. V: -.?/&/ 7^ •• V ■ 

. Both meetings^® toeSr.pwn 
way, will ^.dC,cnw|jd import- 
ance for tSie fetureoff Scotland’s 
premier- iramivand.^ its be*: 
leagaered' board.-- •• •-•' • •- 

r The' .Tt&’-Hhgt " thd ■ Cabinet 
is now going to have -to take 
the- final dedsioiL. on whether 
toeltwp b§S by Hddg Kong and 
Shanghai ' and the - Standard 
Chatx^red/ -Sank ' should be 
blocked.' underlines the political 
sensitivity, of jtoe issues .raised 
by the biggest tlKibanlodg take- 
over for over* decade.; ■ 

The MM&s rep&rttias^ been 
with. Mr John B-iSen. Ibe Trade 
Secretary, for nearly three 
weeks, and is one of he most 
explosive documents to cross his 
desk since he took office. The 
Treasury, the Bank. of England, 
the Foreign' Office and the 
Scottish Offi c e , are all muffing 
over toe . recommendations 
which bring sharply into focus 
the deep, ' divisions -existing- 
within, the Government over the 
issnes raised. hy the rival bids. ■ 
Meanwhile, any' rtoc it sj gn tio 
block the- takeover of the Royal. 
Bank, raises: questions about the 
bank’s - future and " that of its 
board which -had . committed 
itself to merging. with a partner 
with a strong overseas presence. 
Indeed, a decision - not to aBow' 
a takeover of the- Royal. Bank 
could create; more -, problems 
than it was- supposed to solve. 

With assets* of £7Bbn and', 
pre-tax profits of £107itai» the 
Royal Bank Group, which takes 
in Scotland’s largest bank- and - 
Williams & Glyn's (England’s 
fifth largest clearing bank), is 
a phnh ripe for the picking. 

Several would-be suitors, m ; 
addition to. Standard Chartered 
and Hongkong & Shanghai, are 
behe-ved: to be waiting in the 
wings ready to pounce if the 
authorities gve the ' green light 
for a . foreign takeover of UK 
basks. The _ Royal Bank . has .a 
net worth of £56&m and wonld- 
be bidders could -have to pay as 
much ss.£700m for what is ope 
of -the most profitable banking 
groups in the Worm. . , - -L . 


^ Hall, Banking Correspondent 





Ssmn 



Mr George Yatmgnr,Secret*ryof . -. 
Sfevte fairSdsijjiaqft! dynigbtto 
be one erf tip J^-tfgare* voicing 
fears about of the bids. . 
<m:the"bm«^-^f i Scottbh funfldaJ 
community- '.Fiji labour opposite 

.number shurtsbis apjlreh*n*kia. 

teaderaidbaLSo^iAn, says a 

victory would 

tw^ whoBy itt^toe with th. best 

Scottish mericaniite international - 

tradition.* ' • 


Everyone who has been in- 
vxrftf>6d : : agrees 'that Mr Jeremy 
B&tdie and fids - team of four 
’ men . and one woman, investi- 
gating. the two bads needed the 
■wttsdonr of Salomon in writing 
their report. The one certain 
eoneStBHHt as that its recom- 
mendations, are not going to 
satisfy eversfoddy: 

. ■ There are nGouk .major issues 
which toe MMC has had to obit- 
--aider: The. ; first, and far and 
away = the ^easiest; te . the question 
.of - the impact of either hid' on 
■toe level of competition in toe 
banfctog.secaori Indeed if this 
had been the sols criterion, -the 
MMC ’ heed - . hardly have 
bbthered taking evidence: Bpto 
bids pass wzto ’ flyi ng colours. - 
' However^ it os' toe other issues 
which have dominated toe 
JIMCV thoughts and loomed 
large in. the recommendations: 

• The .legitimacy of the Bank 

of England’s controls over- bank 
takeovers which is enshrined hi. 
its 3,972 guidelines on mergers 
and acquisitions; , . ' 

• The question, of whether 
'Britain/ should ; show Control of 
a major retail dej^wn: bank to 
pa^o*eiv«is--i 80 anetoing which 
has - Boit happened . in other 


Mr Humphrey Atkins, the Lord 
Privy Seat His views underline 
the deep divisions within the 
Government. Last November he 
told Parliament, “ it is a 
misapprehension, held by some 
people, regrettably, that the 
Hongkong. & Shanghai Bank is 
a foreign bank. It is not a foreign 
bank. It is a bank that Is . 
incorporated in a British dependent 
territory and Is subject to the 
rules of that territory and to the 
supervision off toe Government." 


European countries but is 
common in toe U.S. 

• The Scottish question, and 
toe impact any takeover of the 
Royal Bank could have on toe 
resilience of toe local economy. 

Of all toe issues, toe questions 
raised by toe Bank of England's 
role in toe affair are toe most 
delicate since they throw into 
question toe Bank’s authority in 
the City — something toot was 
taken .for granted until the 
Hongkong and Shanghai Bank 
stepped in and challenged it 

The Bank’s position is 
simple. It has always assumed 
that it was in. charge of vetting 
takeovers of UK banks, it only 
approves of agreed mergers, 
and it does not want to see 
control of a major clearing 
bank pass overseas. 

It bas nothing against the 
Hong Kong and Shanghai Bank 
but feels that the end of toe 
day it cannot exert the same 
sort of informal influence, per- 
haps' necessary in a crisis, as 
it could if the bank was head- 
quartered in the UK 

It also feels that a merger 
between the Royal Bank and 
Standard Chartered Bank 
would be “good” for British 


.Mr Gordon Richardson, Governor 
of the Bank of England. He 
originally blessed the marriage 
between the Royal Bank and 
Standard Chartered and tried hard 
to dissuade the Hongkong Bank 
from proceeding with a rival bid 
But it went ahead in the face of 
the Governor's “ displeasure." 

Its challenge is the biggest test 
off the Governor’s authority over 
the banking system for many 
decades. The clearing banks, in 
particular, are awaiting the 
outcome with interest 


banking. Standard Chartered 
is virtually the only major 
international bank without a 
strong domestic deposit base 
and is vulnerable as 'a result. 
A merger would create a 
strong fifth force in UK bank- 
ing. 

By contrast the Hong Kong 
Bank argues that it should be 
allowed to proceed with its 
bid. It was happy to abide with 
any conditions imposed by the 
Bank of England and feels 
frustrated that after several 
meetings In the early spring 
the Bank showed little appre- 
ciation of its position. It has 
taken legal advice on the Bank's 
1972 guidelines and believes 
they do not apply to the cur- 
rent takeover, only bids for 
accepting houses — a point the 
Bank disputes. 

The MMC is conscious that 
its recommendations in this 
area could have far reaching 
implications for the effective- 
ness of the Bank of England’s 
“customary authority” in these 
matters. It is not something 
to be overturned lightly. 

A point which has often 
been overlooked is that the 
Bank’s customary authority 


Mr John BHfen, Secretary for 
Trade, las the unenviable task — 
given the wdtiy differing views of 
the Government departments 
involved— of formulating the 
Government’s response to the 
MMCs findings. A supporter of 
Mrs Thatcher’s “ free- market ” 
policies, he could be expected 
to allow both bids to proceed. 
However, he faces opposition from 
the Bank of England and the 
Scottish Office and the Tory 
Party's political managers are 
worried about the impact on 
Tory support in Scotland. 


has been challenged success- 
fully in the past In the 1920s 
Montagu Norman, toe Governor 
of the Bank of England, opposed 
Barclays Bank's plan to set up 
toe forerunner of Barclays 
Bank International and in toe 
1950s the Commercial Bank of 
Scotland ' flouted toe Bank's 
advice and bought a hire-pur- 
chase company. A move which 
was subsequently followed by 
all toe main clearing banks. 

On the other hand toe Bank 
of England's rules are not de- 
signed to encourage competi- 
tion in the financial sector, 
something which is dear to the 
present Govemment”s heart, 
and MMC support for the 
Bank's apparent ban on overseas 
takeovers of UK clearing banks 
will encourage other countries 
to adopt a far less liberal atti- 
tude to overseas acquisitions by 
UK banks. At least, the MMC 
should recommend that the 
guidelines on overseas takeovers 
of UK banks needs to be over- 
hauled to reflect present day 
conditions. 

The other issue which has 
generated considerable con- 
troversy and probably explains 


the Commission’s request for a 
three-mouth extension to- its 
timetable was tie Scottish 
dimension of toe rival bids for 
toe Royal Bank Group. 

The Scottish, argument bas 
been that: the takeover of the. 
Royal Bank, Scotland's premier 
bank, would mean the lies of a 
key decisao n-m airing centre and 
would undermine confidence in 
the local economy. Most of the 
Scottish witnesses that gave 
evidence to toe MMC- opposed 
both bids although the financial 
community bas been noticeably 
quiet and is generally assumed 
to support the Hongkong Bank 
of the two bidders. 

'While the Scottish issue has 
raised emotions north of the 
border, it bas been more diffi- 
cult to ■ establish substantive 
points against either takeover. 
Despite its name, toe Royal 
Bank of Scotland is in many 
respects more English than 
Scottish and Williams A Glyn's 
makes more than half toe 
group’s profits. 

The Commission has consid- 
erable freedom m determining 
the public Interest issues 
involved in mergers, although 
there are certain criteria laid 
down by section 84 of toe Fair 
Trading Act, Of these criteria, 
the most important influence on 
the Commissi on’s detibe rations 
has probably been the need to 
have “regard to the desirability 
of main training and promoting 
the balanced distribution of 
industry and employment in toe 
UK.” 

The Commission has pre- 
viously shown its belief in keep- 
ing Scottish business independ- 
ent. 

However, the Commission’s 
findings in this area have 
varied. In Lunrho’s recent bid 
for House of Fraser, another 
leading Scottish registered com- 
pany, the MMC panel was not 
convinced that a takeover 
would have “ special adverse 
consequences for Scotland.” 

The outcome of the battle for 
the Royal Bank is still an open 
question. The Government has 
toe power to overturn the nega- 
tive advice of toe MMC. Such a 
move would, be most unusual, 
but not unprecedented. Only 
last month the Government 
turned down an MMC recom- 
mendation that retailers should 
he allowed to impose sur- 
charges on credit card users. 


Why Europe lags 
in electronics 

By Giles Merritt in Brussels 


IT IS in the small, somewhat 
undistinguished, " conference 
rooms of the EEC Council of 
Ministers’ Charlemagne build- 
ing next to the Brussels Beriay- 
mont that Europe's grander 
strategies usually bite the dust. 

It is there that the expres- 
sions of political will made by 
the EEC’s " 1st XL," the heads 
of Government of the Ten and 
the Commission President as 
their th rice-yearly summits tend 
to hit the immoveable objec- 
tions of' national polities. 

The past few weeks have pro- 
vided a daunting example of 
this dispiriting truth. And to 
make matters worse .the ambi- 
tious Euro-project that bas foun- 
dered on toe rocks of the “ 2nd 
XI ” of .the Council of Ministers 
was none other than the EEC’s 
crucial strategy for micro- 
electronics. 

The political realities that 
have prevented the Community 
from adopting measures that 
could help develop the Euro- 
pean “.telematics ” market into 
one as Targe and dynamic as 
those of the U.S. and Japan are 
at first sight petty-. 

The aim of the telematics 
strategy was to make a con- 
certed push to get the Com- 
munity into the forefront of the 
micro-technology revolution. 
With Brussels Commission fore- 
casts suggesting that the pre- 
sent $6bn world market for 
telematic equipment will have 
exploded to $80bn by the end 
of the 1980s, member govern- 
ments have been in general 
agreement on the need to catch 
•up with the Japanese and 
American, frontrunners. The 

The priority, if Europe is not 
to be left far behind in the race 
to regain industrial competitive- 
ness through automation, is to 
develop an EEC electronics in- 
dustry that will year-on-year 
supply more than a third of 
world requirements. The 
means, of course, is to have a 
truly commbn market in micro- 
electronic equipment. It is 
argued and there seems little 
room for disagreement, that 
only the development of a uni- 
fied domestic market for the 
electronics producers of the 
Ten will amount to a viable 
launch pad. 

Id Januaay, 1980, toe Euro- 
pean Commission responded to 
all these pressures — and, in- 
deed. to its own internal warn- 
ings since 1974 on losing the 
micro-electronics race— * with a 


formal six-point programme. lit 
among the predictable calls £07 
telecommunications hannonfcac 
tion, inter-institutional neb 
- works and an EEG-wSdft 
approach to research and 
development there lay the md» 
of toe problem. Brussels urged 
member governments to ere 
courage their public procure- 
ment agencies to put a certain 
amount, of business out to 
tender on an equal basis to aft 
Community producers. 

last month three specific 
recommendations were placed 
before the Council of Ministers.. 
The first two — hannonSsation of 
telecommunications, and toe 
setting up of a Community 
market of new telematic termi- 
nals — excited no great contro* , 
versy. But France has adopted , 
an obdurate attitude on toe 1 
partial opening up of govern- 
ment purchasing — even though 
toe proportion of electro rues 1 
procurement Do be thrown open 
amounted to only 10 per cent, 
and that as a recommendation 
without any compulsion for 
governments to do 90 . 

France’s objection, which. Is 
being backed in a lukewarm 
fashion by Italy, is that the 
liberalisation should apply only 
to EEC “producers,” and not 
to “suppliers,” whito could : 
mean any non-ECC electronics 
giants operating inside the Com- 
munity. 

Semantic wranggling fen 
Brussels, over which, if either 
■of those two terms should be 
written into toe Camammaty - 
strategy, has so far produced a 
deadlock. At first glance, toe 
argument is furthermore being < 
reduced to one of French t 
“protectionism” versus West 1 
German “liberalism,” for Bonn 
has been giving very strong 
backing to the new public , 
procurement proposal. 

In all this, the protagonists 
seem at rude of having missed 
the point. The non-EEC elec- 
tronics producers are in any 
case an integral part of toe . 
Community ”5 micro-technology * 
industry, providing as toey do f 
both employment and know- - 
how. The aim of the strategy ■ 
is to make the industry inside 
toe EEC grow', rather than to 
cavil over the European 
‘•purity*’ of the companies con- • 
cerned. And the effect of not ’ 
implementing that strategy ■ 
could well be to sentence those • 
EEC telematics producers to 
stagnation. 


Letters to the Editor 


Government loan guarantees to small businesses 


ARC 

R'S 


3 < d 


From the. Chairman, and 
Managing Director, Elite • - . 
Hosiery Ctomporttf ■ 

Sirr— Through my M3*. lyh-ave 
■now received details of Govern- 
ment loans to British Ueyiand 
to use- as a yardstick against 
toe loan . guarantee scheme . to. 
small firms. Government fund- 
ing of British Leyland currently 
totals £I-7bn with £540m of toe 
promised £900m for 19411-88 yet 
to he advanced. This has been 
made available as equity— not 
surprising as no : reasonable per- 
son would ever expect it to be. 
repaid as a loan.Jtis therefore,., 
effectively an interest-free gift. 
Compare this to the loan guaran- 
tee scheme 'for small finis £50m . 
to be made available in each of 
the next three years total £150m 
which in Gbverament.tenns isn't 
even petty cash. Let tt not be 
forgotten that the Government 
is not -even finding this £l50m 
- — it is only 'guaranteeing it to 
toe banks. Only If eveiy 
approved loan to every company 
resuited to bankruptcy would 
it have to provide .this sum — 
highly unlikely;. 

- The scheme is pot even stan- 
dard to all applicants, toe Nat- 
West charging lpec cetrt i of toe 
loan with a .limit of .£100 while 
other banks charge 1 per cent 
for the work involved in submit- 
ting the application. Lloyds 

Bank charges 2-per cent on the 
loan and Mere charge' 2i per 
cent interest wer.hase. rate I. 

The Government points to toe 


-success of the scheme by the 
amount of money that has 
already been, granted-rwlth 
toe banks giving . small com- 
panies with any degree of risk 
no other choice but the loan 
scheme, it would indeed be -sur- 
prising if it was not a success 
Judged bn this basis. 

• .CSktipahaes paying 2 J per cent 
interest above base rate to the 
■bank + 8 per cent to the 
XSovernmeut — which paid three 
mopths in advmice = approxi- 
mately 3£ per cent — are thus 
paying an -horrendous 5* per 
Tcent over base rate! The closer 
-ope- looks at these figures toe 
- more ' horrific the scheme 
appears. WHh a copper bot- 
tomed - guarantee from toe 
Government bn 80 per cent of 
the Joan why .should the hanks 

be aHowed. to charge more than 
1 per cent 'over base rate on 
this portion, of toe loan, the 
. same as wbrild be charged to a 
" Blue Chip ” company? If this 
is accepfed toen the 2} per cent 
interest diarged by the banks 
over toe complete loan means 
that toey are in effect charging 
7.25 : pee -.cent over base rate on 
the 29. : per cent of the loan that 
they have at risk. To this needs 
to be added , toe 3 per cent 
interest charged by the Govern- 
ment for toe- guarantee — need 
one wonder that the first bank- 
ruptcies are; appearing— what 
new business could stand these 
rates of interest? 

It should surely not be 
beyond toe drift of- toe Govem- 


S tumbling and unsure 
but it is progress 

From Mr R. Briffcm 

Sir, Although unfashion- 

able to do so. your refreshingly 
optimistic editorial (December 
3IJ reminds ds that; desjdte 
everything, our civilisation is 
making progress a 

somewhat stamping and un- 
sure addon. 

You would bare done weH 
also to point out toat, seen n x 
toe context of soldi .progress, 
those Whose political, econorarc 
and ■ moral ' thinking dejienris 
upon tod preservation and re- 
newal .of toe old industaal 
order are no longer toe . revolu- 
tionaries; they have so vocifer- 
ously proclaimed themselves to- 
be* They! are shown tip for 
what -toey - truly are— the re- 
actionaries. they purport to 
despise. 

Ricbsrt Britton, 

“Crook lets,"' Sigh Street,' 

Skrewt im* Sa&sburft waft. 


£ 18 m kwflsh in. 
missing bottles 

From the Sales and. Marketing 
Director . A. G. Bar and Co 
• Sir, — Mauri ee Samuelson’s 

article on packaging (January 
5) raises a persistent miscon- 
ception that it , Is industry 
which' d iriikee .toe returnable 
bottle. . 

We support the returnable 
bottle system and try to im- 
prove it In toe last 12 months 
the trippage within this com- 
pany's business has impr oved 
against a previous tr end of 
declining tnppage. The system, 
stfil loved 'by industry, seems 
less loved by the great British 
public who annual^ fa2 to 
return 180m ■ bottles to our 
industry, as a whole; worth £18m‘ 
in lost deposit 

PET is certainly an excellent 
pack for bulk purchase; 'but 
please do not perpetuate the 
idea that the returnable bottle 
is dead, or indeed, dyings 
R. H. Stothert, 

A. G. Barr and Go, 

North Road,, 

Atherton* Manchester, 


ment negotiators to devise a 
standard scheme with toe banks 
on the following basis — 1 per 
cent with a maximum of £100 
for the work involved in sub- 
mitting the application. Banks 
to charge 1 per cent above base 
rate, for the 80 per cent guaran- 
teed by toe Government (the 
equivalent Tate to Blue Chip 
companies) .plus 3 per cent over 
base rate on the unguaranteed 
20 per cent. This averages 1.4 
per cent over base rate on the 
total loan. As small companies 
cannot normally borrow on 
better terms than 3 per cent 
over base rate the Government, 
by charging 2 per cent interest 
on the 80 per cent guarantee, 
would bring the total interest 
charge up to 3 per cent over 
base rate. This should be suffi- 
cient to safeguard against 
default payable three months 
in arrears. Whatever mix of 
interest rates was agreed the 
total package should not exceed 
3 per cent over base rate. 

If toe .Government ' is sincere 
about helping small companies 
— and I believe it is — it should 
amend the scheme forthwith 
along the fines outlined above 
and make the new terms retro- 
spective.' 

J. A. Wheatley 
(Immediate Past President of 
the Knitting Industries 
Federation). 

Elite Hosiery Company; 

Hajcley Road, 

Hinckley, Leics. 


Successful selling 
to Japan 

From Sir Michael Wilford 
Sir, — It is not my function 
to defend the Japanese against 
the accusations made by Mr de 
Saxe { January 6 )* . but as a 
former ambassador in Japan I 
do' feel obliged to defend 
British exporters whose efforts 
are beiittjed by Mm. I have 
been appalled since my return, 
to this country at toe ignorance 
of people who do not know 
that we export annually 'to 
Japan about £600m worth of 
goods. Japan is in fact about 
(I write from memory) our 
eleventh biggest market in toe 
world. A recent report by the 
Economist Intelligence Unit 
dealt with a number of the 
-wilder allegations about non- 
tariff barriers. There is in fact 
virtually nothing except fresh 
meat from Britain that cannot 
be sold in Japan, as those who 
really try have discovered. I 
take my hat off to those who. 
have tried hand and succeeded 
(Sir) Michael WHfonl. 

Brook Cottage, 

Abbotts Anat 
Andover* 


Marconi and the 
torpedo deal 

From the Managing Director, 
Marconi Company 

Sir , — The article headed 
“Defence Ministry puls tighter 
controls On torpedo deal ” 
(January 8) contains a number 
of inaccuracies which, unfor- 
tunately, could be misleading 
to the taxpayer as to cost and 
potentially damaging to export 
prospects. 

The statement that £920m had 
been spent on Stingray by 1979 
is not corecL The total spent 
by Marconi and British industry 
on Stingray by June 1979 was 
£67m and today is about £240m. 

The figure of £920m comes | 
from a Select Committee esti- j 
mate of the cost of Stingray 1 
over its 29-year life span includ- 
ing. not merely design and 
development, but also tooling, 
test equipment and the cost of 
supplying toe Royal -Navy's total 
requirement for these sophisti- 
cated weapons, plus Vat. 

The history of Marconi’s con- 
tractual position is inaccurate. 
For almost eight years prior to 
1979 Marconi had worked on the 
project as a major sub- 
contractor to the Ministry of 
Defence on a cost plus basis. 
During that period The Ministry 
exercised toe total control asso- 
ciated with the function of 
“ prime contractor.” 

In 1979 Marconi signed a 
contract worth £2 00m for toe 
design- of the system and the 
manufacture of 270 torpedoes 
and for toe first- time became 
toe “prime contractor” for 
Stingray. That contract defined 
the respective responsibilities of 
Marconi and toe Ministry in a 
way which was proper to Mar- 
coni’s new “prime contractor w 
role and under that contract 
Marconi has completed each 
phase by toe prescribed date 
and been awarded every bonus 
provided for good performance. 
Stingray will start its accept- 
ance trials very shortly and on 
schedule. Marconi is entitled 
to to ink it bas done somewhat 
better than “ rather well” 

Turning to toe heavyweight 
torpedo, the TJ-S. Navy’s Mk 48 
is not the weapon which was 
offered in competition with toe 
Marconi 7525. You state that 
toe American torpedo which 
was competing for toe contract 
now being placed is an “already 
developed weapon." It is not It 
is based on toe Mk 4S design but 
is still -in toe course of develop- 
ment and has yet to enter toe 
water, 

Arthur Walsh, 

Marconi Company. 

Stanmore, Middlesex./ 

Since Marconi deefined to be 
interviewed for toe article, 
references to the company's 
performance were necessarily 
based on information from toe 
Ministry of Defence. Editor, 



NATURAL RESOURCES 
DEVEEOPMEjYT 


American Express Bank 


>. A rr.e-'icir cxp r *ss fnic-ronkcnal Bjnkipq Oyr pcr^ticn 


■ i 








18 


- Financial Times Tuesday January 12 1982 


Companies and Markets 


UK COMPANY NEWS 


Creditable* £10.6m from 


Magnet & Southerns 


Improved 
trend at 
Wheway 


A CREDITABLE profit statement 
has been turned in by Magnet 
and Southerns, manufacturer of 
prepared joinery, doors and 
ancillary products, says Mr S. 
Oxford, the chairman. 

Taxable profits declined 11 per 
cent from £11.9ra to £10.S8ra for 
the six months to September 
1981, but be claims the company 
44 has lost nothing on the second 
half of last year." 

Last September the chairman 
said he expected profits this year 
to be lower— for the whole of the 
19S0-SI year the pre-tax surplus 
amounted to £22.61m. 

“We feel badly frustrated with 
the low level of activity," says 
Mr Oxford, “but nonetheless have 
pursued our main objectives." He 
adds that the company has the 
capability to respond quickly to 
any improvement in the national 
economy, and says that the latter 
part of the year may provide the 
opportunity. 

A same-agajn dividend of 2p is 
being paid — last year's total was 


DIVIDENDS ANNOUNCED 




Date 

Gorre- 

Total 

Total 


Current 

of 

I 

i 

for 

last 


payment 

payment 

div. 

year 

year 

A. Cl. Barr ....... 

4.62 

— 

3.64 

5.87 

4.S9 

Carclo Eng- 

int, 1.3 

Feb. 27 

1.3 

— 

2.6 

Cleverhouse 

« 

Mar. 2 

.4.15 

6-55 

6.4 

Ellis & Everard 

...int 2.5 

Mar. 15 

2.27* 

— 

5.91“ 

Magnet & Southerns int 2 

Mar. 31 

2 

— 

5 

B. Paradise 

...inL 0.7 

Apr. 8 

— 

— 

0.7t 

IL Samuel 

...int. 1,5 

Feb. 1 

1.5 

— 

625 

F. H. Tomkins ... 

...int. 0.5S 

Apr. I 

0.5 

— 

1.15 

Wheway Watson 

...inL nil 

— 

nil 

— 

0.05 


Dividends shown pence per share net except where otherwise stated. 

* Equivalent after allowing for scrip issue, t On capital 
increased by rights and/or acquisition issues. J For 15 months. 


5p. Turnover this time slipped 
from £73.25m to £70.86m. 

Tax was almost the same at 
£4.1 1m (£4.03m)— the figure now 
includes stock relief and the 
figures for the previous year have 
been adjusted accordingly. 

Net profits emerged lower at 


£6. 44m, compared with £7.S4p. 

For the six months, taxable 
profits of wholly-owned subsi- 
diaries, Magnet Joinery and 
Southern Evans amounted to 
£7.35m (£8.16mV and £3-31m 

(£3.60m) respectively. 

See Lex 


A. G. Barr expands to £3.28] 


WITH VIRTUALLY all of the in- 
crease in pre-tax profits at A. G. 
Barr and Co. coming in the 
second period, this soft drink 
manufacturer finished the 53 
weeks to October 31 1981 with 
£3.2Sm. compared with £2. 57m for 
the previous 52 week£. 

Turnover moved ahead from 
£28. 78ra to £3 1.9m and the divi- 
dend is stepped up to 5.865p 
(4.S875p) net per 25p share with 
a final payment of 4.615p. 

After six months the taxable 
surplus was £975,000, against 
£950,000. 

Turnover in the current year 
so far had been disappointing, 
the directors state, compared 
with the same period in 1981. 
This. was mainly because of a 
tightening of disposable incomes, 
they explain, and the severe 
winter weather which had 
affected sales as well as causing 
distribution problems. 


Mr Robin Barr, chairman, says 
the absence of sustained summer 
weather and the effect of reces- 
sion adversely affected the 
percentage increase in turnover 
for the 53 weeks, but favourable 
container prices enabled the 
group to keep the average price 
increase of its products well 
below the retail price index. A 
small, but welcome, improvement 
in margins bad been achieved, he 
adds, particularly- on non-return- 
able containers. 

Mr Ban- says the creation oF 
three flavours, with a brand 
image linked to Peanuts cartoon 
strip characters, “ will be 
marketed during 1982 through an 
extended range of packs and 
support advertising." 

The group has completed the 
purchase of a Walthamstow 
factory- in which a can produc- 
tion line from Atherton will be 
installed; the London branch 


activities at the Edmonton site 
will be (transferred to the new 
location by mid-summer. 

During the current year Barr 
has budgeted to spend approxi- 
mately £2 5m on fixed assets 
within its national network of 
manufacturing plants and distri- 
bution depots. 

Profit figure for the 53 weeks 
included - interest received of 
£390,000, against £356,000, and 
was subject to tax of £834,000 
(£560,000). There was an extra- 
ordinary credit, last time, of 
£187,000, and earnings per share 
are given as 38.68p (31.82ft). 

On a CCA basis the pre-tax 
figure ‘ is reduced to £2.45m 
(£1.74m). 


Including an exceptional credit 
of £75,000, pre-tax losses of 
Wheway Watson Holdings were 
reduced to £413,000 for the 26 
weeks ended October 3. 1981, 
compared, with £694,000 for tile 
previous 27 weeks. Turnover fell 
from £ll.34m to £8.54m. 

There is no interim dividend 
again — last year's final payment 
was 0.05p net after a pre-tax Joss 
of £l.$3m {£470,000 profit). 

The directors anticipate a mar- 
ginal group loss for the second 
half of the year, and given an 
improvement in the economic 
environment, they look forward 
to a return to profitability during 
the 1982-83 year. 

The loss incurred by the 

forging division accounted for a 
substantial part of tbe group 
trading loss, (the directors state, 
compared with a near break-even 
position last year. Steps have 
been taken to improve the 

situation and while losses will 
continue in -the second half, they 
are expected to be at a lower 
level. 

The chain and marine lashing 
sectors improved their positions, 
making marginal losses this time, 
against a substantial deficit pre- 
viously, and the hoist division 

achieved a profit much in line 

with the corresponding period. 

And, although losses continued 
in the lifting engineering side, 
they were at a lower level, 
directors explain. 

The exceptional credit com- 
prised the proceeds of plant 
sales, less redundancy and 
removal costs, and interest 
charges took £358,000. compared 
with £457,000. There was no tax 
(same). 

Loss per 10p share is given as 
1.45p, against 2.53p. 


Carclo rises sharply and 
sees similar second half 


losses 

reduced 






ALTHOUGH TURNOVER 
declined by almost £lm to £l3.4m, 
taxable profits of Carclo 
Engineering Group advanced 
sharply from £466,000. to £$5,000 
for the half year to September 30 
1981. 

Sir Robin Brook, the chairman, 
says that in his annual report 
for 1980-81 the company was 
budgeting for a small profit pre- 
tax in the first half followed by 
an appreciably better second six 
months. In the event, be says 
trading improved more rapidly 
than he forecast— it is anticipated 
that second half earnings will he 
maintained at about the same 
leveL 

First half stated earnings per 
25p came through at 5,Sp 
(7.8p loss) but the net interim 
dividend is being held at l-3p — 
a final, also of l-3p. was paid last 
year from taxable profits well 


down at £718,000 (£2-S7m)r 

Half year interest charges were 
lower at £380.000 (£540,000). Tax 
took £544.000 (£572,000) leaving 
the net balance at £441,000 
(£106,000 loss). After minority 
debits of £83,000 (£77.000) and 
extraordinary debits last time of 
£186,000 available prefits emerged 
at £232,000, against a deficit of 

£497,000. 

At September 30 1881 borrow- 
ings net of cash were 40 per cent 
of total shareholders' Rinds, com- 
pared with 63 per cent at-March 
31 19SL due mainly to the sale -of 
fixed assets surplus to require- 
ments and to reduced working 
capital needs as a result of efforts 
to streamline the UK activities. 


comment 


Carclo was scheduled for re- 
covery in the current, year, after 


heavy rationalisation in 1980. So 
far, tiie recovery, is ahead of ex- 
pectation, 4 the shares leaped 
ahead lOp yesterday, to 72p- .If, 
as the company expects, second 
half earnings broadly match the 
first half, pre-tax profit should be 
not far short of £L6 tq, suggesting 
a fully-taxed p/e of 8. This is a 
far more demanding multiple 
than it looks, because a very sub- 
rfantial part of the earnings are 
locked into the Indian subsidiary. 
Indian profits appear to have 
risen by about 8 per cent, and 
since European operations have 
been less rewarding, practically 
all of the £0.Mm trading improve- 
ment can be traced to loss 
elimination in . the UK A main- 
tained final would imply a yield 
of 5.3 per cent, sufficiently low to 
indicate market optimism over a 
— per ha ps partial— restoration of 
dividend. •„ 


SECOND-HALF taxable losses of 
Braid . Group were Sharply 
reduced from £692,677 last tune 
to £113,164 and for the year as a 
whole to September 30 1981 tins 
vehicle distributor finished 
£337,164 in the Ted pre-tax, com- 
pared with £872,677. Taroom- 
was lower at £38. 69m, against 
£43.47m. . J .. 

The -pre-tax deficit was struck 
after much lower interest charges 
of £451392 (film). There were 
tax credits of £257, 393 ( £110,718 
charge) and after extraordinary 
credits of £89,638 f£3£03) tbe 
attributable prefit emerged at 
£9,867 (£979,492 loss). 

Stated loss per 5p .share was 
reduced from 16.5p to l-45p tut 
there; is again no .dividend loir 
the year 

CCA adjustments increase tbe 
taxable loss to £754,000 and on 
the same basis loss per share was 
8.4p< 


Ellis & Everard ahead midway 


comment 


Tomkins 
rises in 
first half 


The Wellcome Foundation Limited 


Report for the year ended 29 August 1981 

1981 1980 

£m £m 


Capital employed 

£403.0 

£338.0 

Group sales 

£500.3 

£4414 

Expenditure on research and development 

£52.0 

£47.3 

Profit before tax 1 

£50.1 

£49.3 

Profit after tax 

£33.1 

£37.1 

Distribution to shareholders 

£105 

£9.0 


& 

& 



“ Group sales were £500 million against £442 million 
for the previous year,” says Mr A. J. Shepperd, 
chairman of The Wellcome Foundation Limited, in 
his annual review. Group profit before tax was 
£50.1 million compared with £49 J million. 

However, profit for the previous year contained an 
exceptional stock credit of £6.4 million. When 
adjusted for this factor, the increase in profit of 
£7.2 million shows a substantial improvement of 
17%. achieved, says the review, in a difficult world 
trading environment.- 

With only 16% of group sales being made to the 
UK domestic market, the review notes the 
continuation of widely fluctuating trading 
conditions and currency values. If sales and profit 
for 1980 and 1981 had been compared in local 
currency terms, the increase in sales and profit 
would have been 16% and' 20%, respectively.- - 
In research and development, the chairman 
reports: “ We have maintained a leading position 
in both the production oF interferon and the 
study of its clinical utility.” 

Long-term work, in antiviral chemotherapy resulted 
in the first introduction of the novel agent 
4 Zovirax ' as an ophthalmic ointment in the UK 
market. ‘ Zovirax ' has a unique type of action 
against herpes viruses, and other even more ' 
important presentations should reach the market, 
in 1982. 

There has also been a strong increase in research 
work in biotechnology. 

Capital expenditure in the UK, £212. million out 
of £40.9 million, was nearly twice the usual 
expenditure. Work in hand includes a new 
production facility for Wellcome's diagnostics 
. business, a new organic chemistry research 
building and new pharmaceutical development 
laboratories. 

Elsewhere, the company completed a new 
pharmaceutical factory in India, extensions to its' 
factory in Kenya and a new building for developing 
drug safety at its. research laboratories in the USA. 

In Pakistan a major factory extension is nearing 
completion. In Montreal, the Canadian company 
will relocate to new premises by -1983. 

Exports from the UK were £1 163 million, ' 
compared with £1073 million. 

The chairman reports: 4 ' The. group’s finances . 
remain in a strong position and there are adequate . 
liquid funds and undrawn facilities, including certain 
term monies, to fund future known capital 
expenditure.” -•• • 

The Wellcome Foundation Limited is an inter- 
national group of pharmaceutical and chemical 
companies with .headquarters in the United 
Kingdom. Under the will of Sir Henry Wellcome, 
all distributions received by the trustees who are 


WellC0me the s * ,are ^°^ ers ire vpp_fi*d by them to the 


support of medical and veterinary research in 
universities and hospitals throughout the world. 


Stripping out interest receivable, 
A . G. Barr shows a smart 
increase in pre-tax profits of 
more than a third. The soft 
drinks business remains weak 
and Barr's volume advanced only 
marginally. But business for tbe 
company's container suppliers is 
much worse as the industry is 
plagued by over-capacity, and 
sagging demand giving Barr 
scope for some tough negotiat- 
ing. Barr's pre-interest; pre-tax, 
margins have improved from 
7 A per cent to 9.3 per cent in 
the year. At the same time, the 
group has been expanding and 
improving its plant It spent 
£3.5m last year and plans to 
invest another £2. 75m in the 
current year. This programme 
plus a “vigorous" media cam- 
paign -to support its Snoopy 
drinks, should be amply covered 
by the group’s cash reserves 
(about £3m at the last year-end 1 
but could reduce interest 
receivable next time. A bigger 
crimp on Barr’s prospects is the 
current arctic weather which is 
preventing drinks' lorries in 
Scotland from their appointed 
rounds. The shares, up lOp to 
215p, yield 4 per cent, 


by 

came 


Hallam Sleigh 
omits pref. 
dividend 


ALTHOUGH AFFECTED 
activity in France, which 
into recession some nine months 
behind home trade, pre-tax 
profits of F. H. Tomkins 
expanded from £208,000 to 
£384.000 for the half-year to 
October 31 1981. Turnover, how- 
ever, dropped from £10.09m to 
£7.38m. 

The group manufactures 
buckles, bright drawn steel and 
nuts and bolts. The directors 
expect second-half profits to 
reflect the customary significant 
improvement over the first 
period and, having achieved a 
tangible advance in group 
liquidity, they feel justified in 
restoring tbe interim dividend to 
the 1979 level. 

The payment of 0.575p net 
compares with 0.5p last time. A 
total of 1.15p was paid in 1980-81 
from taxable profits of £788,000. 

The directors report that busi- 
ness in the UK has been improv- 
ing steadily. Corrective action 
was taken to reduce the French 
establishment in line with the 
anticipated level of trade and the 
latest indications are that the 
deterioration -has been baited 
and, to some extent, reversed. 

After tax of £117.000 (£67.000) 
and minorities of £6.000 (£7.0001 
the net balance was up from 
£134,000 to £261,000. 


Taxable profits of Ellis and 
Everard. industrial chemical 
distributor, rose from £701,000 to 
£803.000 for the six months to 
October 31 1981 after net interest 
charges of £31,000. compared with 
£52,000. Turnover was ahead at 
£16.29m. against £l5.0fim. 

Mr Simon Everard. the chair- 
man, believes tbe company has 
weathered the worst of the reces- 
sion and although trading con- 
ditions remain "anything but 
easy ” he is hopeful that full year 
results will reflect progress and 
growth. 

With stated earnings per 25p 
share higher at 6p (5. Ip) for the 
half year the net interim dividend 
is being stepped up from the 
equivalent of 2 .2727 p — after 
allowing for the cme-for-lO scrip 
— to 2.5p. A total equal to 
5.909p was paid for 1980-81. Six 
months lax took £319,000 
(£295,000). 

On a CCA basis pre-tax profits 
of the group, in which IC1 has a 
o5 per cent interest, were £589,000 
*(£560.000). 

The directors say the first half 


traditionally produces the larger 
part of profits for the group as 
a whole. However, they still ex- 
pect the second half to take the 
full year results close to 1980's 
near £L5m record. 

Commenting on the first six 
months they say that both tbe 
manufacturing and fin* chemi- 
cal divisions were back in profit, 
bat the merchanting sector, 
which accounts fox 85 per cent of 
group sales, saw a small down- 
turn. They point out that the 
results for the previous financial 
year included pre-tax losses of 
£115.000 from 'the discontinued 
leisure division, of which £70,000 
was incurred in the first half. 

A small UK acquisition — less 
than £200.000 — is expected to be 
announced next month. . The 
group is also hoping to 'c linch a 
deal before the end of the year 
which could give it control of 
one or two U.S. companies. The 
move, which would be its first 
U.S. takeover, is unlikely to in- 
volve more than £2m. 


• comment 

Ellis and Everard' s 14J3 per cent 


Polly Peck chief explains 
item noted by auditors 


rise in pre-tax profits exceeded 
analysts’ expectations. Seventy 
thousand pounds of the increase 
is ■attributable to the closure of 
the los&making leisure division. 
Profits are finally coaxing in from 
the An stead fine chemicals 
division, where break-even point 
was reduced, aided by cutbacks 
in technical staff. Improvements 
generally have come from in- 
creased business from, existing 
accounts allied to a tougher 
attitude to debtors and, for the 
first time m four years, no in- 
terim wage increase. The 
manufacturing division, repre- 
senting aibout 4 per cent of turn- 
over, has done particularity wen, 
and tbe company plans a smaH 
(under £200,000) acquisition in 
this area, to -be completed in 
February. The company feds its 
distribution network in the UK 
is complete and the long-awaited 
U-S- acquisition BfaonM finally be 
sown up by the end of 1982. 
About £2m is the likely price, 
though cash holdings have been 
eroded by restocking on the 
mertibanting side. Wath the com- 
pany announcing that it is finally 
firing on ail cylinders, the 
market responded with the share 
price, rising lOp to 128p, a high 
for -1981-82, and yielding 7.4 per 
cent. ICI holds just over 26 per 
cent -of tire equity. 


Tisbnry 

rights 

extension 


THE FINAL date for accep- 
tances In tbe £206400 rights 
' issue of unquoted TWmxj 
Brewery is being extended from 
January 7 to January 21. - - . 

Mr C. R. Baker, chairman, said 
acceptances had already been 
received in respect of more than 
£100,000 hot suspected that postal 
delays over the Christmas arid 
New Year period may have de- 
layed other, responses to the 
three-foMwo offer- 

Mr Baker also said the com- 
pany has agreed to acquire a 
wine warehouse business in 
Hampshire for a price based on 
asset value. The initial payment 
will not exceed £9,000 and the 
total value of the assets to lie 
acquired does not exceed 
£25,000. 

Dealings in Tlsbuxy shares can 
take place under Stock Exchange 
rule 163 (2) £a). - 

Elsewhere acceptances have 
been received in respect of 9338 
'per cent of - the 6.47m shares of 
Lennons Group, offered m a one- 
for-five rights issue at 44p. 

Also the recent righto issue ity 
Haslemere Estates of £22.1m in 
9 per cent convertible loan stock 
has been accepted as to 902 per 
cent.' 1 




' . . • r « 


Hallam Sleigh and Cheston, tbe 
lossmaking general engineering 
group whiCh trades under the 
Widney name, is not paying tbe 
preference dividend which was 
due on December 31 1981. 

The company, which has not 
paid a dividend on the ordinary 
shares for the past three years, 
reported a pre-tax loss of £60,000 
for the first half of 1980-81. 

The directors said in their 
interim report that although the 
group bad traded profitably since 
March 31 1981 it was unlikely 
that tiie half-year loss would be 
extinguished by profits in the 
second half. 

Tbe shares were unchanged at 


Paradise 
up sharply 
at midyear 


7p yesterday. 



SPAIN 

January 8 

%’ 

'+’or 

Banco Bilbao 

337 

+2 

Bamoo Central 

338 

.+3 

Banco Extanor 

303 

Banco Hispana 

325 


Banco Ind. Cat 

115 


Banco Santander 

347 


Banco Urquljo 

213 


Banco. Vizcaya 

355 


Banco Zaragoza ......... 

216 


Drogados 

127 



60 


Fees* 

60.7 

:+2 

Gal. Preeiados .......... 

43 

Hidrolo 

66.5 

i+zs 

Iherduera 

53 

Patrol eos 

89.7 

:+o.5 

Petrotrbcr ............. 

100 

—i 

SogufiM 

40 


T«ia forties 

72 

r+ 1 1 

Union Elect. 

62.5 

-2 


Sharply increased mid-year 
sales and profits are announced 
by B. Paradise, rhe furs and 
leather group in which R. and J. 
Pullman has a 30 per cent hold- 
ing. 

For the six months to 
October 31 1981, turnover more 
than doubled from £l.£Sm to 
£3.81zn, while profits climbed 
from £20,000 to £151,000. There 
is again no tax charge. 

An interim dividend of 0.7p 
net per share is declared. For 
tbe previous 15 months period, a 
single 0.7p was paid from taxable 
profits of £132.000. 

The directors say they regard 
the interim figures as satisfac- 
tory in the light of present 
economic conditons and the 
improvement in profitability is 
expected to continue. 

The dividend absorbs £35,000. 
Stated earnings per lOp share 
rose from 1.4p to 2.99p. 

R. and J. Pullman acquired a 
major interest in Paradise 
between October 1979 and March 
1980 and Pullman's chairman and 
chief executive. Maurice Hope, 
is on the Paradise board. 


AUDITORS Stoy Hayward have 
drawn attention to a note in the 
accounts of Polly Peck (Hold- 
ings) which spells out details of 
substantial sales to Nadir Hold- 
ings Co— a company jointly 
owned by Mr Asil Nadir, Polly 
Peck's chairman and managing 
director, and his father Mr L 
Nadir. 

• The note relates to sales by 
the newly formed Uni-Pac 
Packaging operation In Cyprus 
making corrugated boxes. £2.16ra 
of Uni-Pac's sales were made 
through Nadir Holdings. The 
balance owing to Uni-Pac at the 
end of the financial year. August 
31. 1981. was just over £2m. 

At the time of the report 
Nadir Holdings had paid over 
£lm to Uni-Pac and Mr Asll 
Nadir said yesterday that only 
£300,000 to £350.000 remained 
outstanding and this would be 
paid within the next fen days. 

Mr Nadir stressed that trans- 
actions between his private 
company and Polly Peck’s 
Uni-Pac involved no profit for 
his company. 

The reason for the arrange- 
ment was hecause the delay, in 
the start up of Uni-Pac had 
caused concern among local 
fruit growers that Uni-Pac would 
not he able to fulfill their 
orders, leaving them to buy 
boxes on the open market at a 


much higher price. 

The original plan was to start 
the packaging plant in September 
1980. However market research 
established that the sales 
potential was greater than had 
been envisaged. Mr Nadir 
estimates the market— agricul- 
tural and industrial — in Cyprus 
and surrounding countries to be 
around lbn boxes a year. 

Uni-Pac then took die decision 
to put in a heavier corrugating 
machine though it meant 
strengthening the foundations' of 
the 60,000 sq ft factory by 
further 3 foot. The plant did not 
become operational until March 
last year. 

Mr Nadir says that his private 
company guaranteed to fulfil all 
orders to maintain confidence 
If Uni-Pac had- been unable to 
produce in sufficient quantity 
Nadir Holdings would have been 
obliged to buy boxes elsewhere 
and have them shipped to 
Cyprus. In the event Uni-Pac 
met all tbe orders and the 
arrangement was unnecessary. 

Polly Peck is now putting in 
another production line at the 
Uni-Pac factory ultimately 
doubling the potential output by 
mid-summer to around 60m 
boxes a year. Three-fifths of 
sales go to industrial customers 

The annual meeting is called 
for January 27. 


Excellent year for 
linked life operations 


Albany Life newannual premiums 

>n in 1981 




Results for the year ended 31st December 1981 compared with 1980: 

I960 increur in 1 9fi I 

NEW ANNUALISED PREMIUMS £9.42 miffion £6.04 million 56% 
NEW UNIT-LINKED 

SINGLE PREMIUMS . . £35.6 million £26 million 37% 

.As the above figures show, the Company lias continued the -dynamic expansion of sales 
In its main product areas of savings and investment plans, self-employed and directors' 
pension plans and unit-linked Bonds. This; together with sales ofnon-unit-linked single 
premium products, brought total new premium income of £5 1.17 million. 

We wish to thank everyone who has contributed to these excellent results. 


Albany life Assurance 


A member of the £4,000 million American General Corporation Group of Insurance 
Companies. 

Investment Advisers; Warburglpvestment Management Ltd. 

Property Advisers: Knight Frank & Rutley. 

Registered & Principal Administrative Office: Station House, 3 Darke® Lane7Potters Bar, Herts. EX6 1 AJ. 



Improvement 
by Murray 
Northern 


Revenue of Murray Northern 
Investment Trust advanced, from 
£449,824 to £547.772 for the half 
year to November 30 1981. struck 
before tax of £215,212, against 
£170,468. 

The hoard estimates that earn- 
ings per 25p share for the year 
ending May 31 1982 will be 1.9p 
(lB5p). ^ 

An unchanged net interim 
dividend of O.flp per share has 
already been paid — the' final last 
time was 1.25p. 

At November 30 1981. net 
asset value was 111.5p, against 
110.2p six months earlier. 


HOWARD AND 
WYNDHAM 

The dividend due this month 


on Howard and Wyndham's 9 
per cent convertible cumulative 
redeemable preference shares 
1B99 and the 9 per cent special 
convertible cumulative redeem- 
able preference shares 1999 will 
not be paid. Payment is in 
arrears from July 1 1979. 


LAST YEAR was excellent for 
unit-linked life and pensions 
business, according to figures 
now being released by the 
linked life companies and by the 
linked operations of traditional 
life companies. 

A9bbey Life Assurance, one of 
the two largest linked life com- 
panies, reports Jump sum invest- 
ment made in 1981 exceeding the 
£100m mark for the first time. 
Unit-Hfeked -bond sales jumped 
86 per cent from £29.9m to 
£55.6m, while guaranteed bond 
investments more than .doubled 
to £51.1m i£22.8m). 

Annual premium business was 
also buoyant kst year, with life 
premiums rising 44 ■ per cent 
from £19.8m to £28.6m and pen- 
si on premiums by 29 per cent to 
£26.Sm. against £20.8m. 

The company fully partici- 
pated in the boom in self- 
employed pensions business seen 
last year as a result of conces- 
sions in the 1980 Finance Act 
and the introduction of loan-back 
facilities. New annual premiums 
improved 44 per cent to £ll.5m, 
and single premiums doubled to 

£ 2 . 2 m. 

Director aod executive pension, 
husiness was less buoyant with a 
20 per cent rise in annual pre- 
miums to £15.3m and a one- 
third jump in single premiums to' 
£4-5m. 

Total premium Income for the 
year advanced 50 per cent to 
£255m (£170mV. while benefit 
payments, at £105m, passed the 
£100m mark for the first time. 

Abbey's growth in life annual 
premiums was spread across the 
whole sopctrum of its product 
range. This has been extended 
this year bv the introduction of 
a new unitJinlced whole life 
plan — CoverWaster — under 
whirh life cover can- be varied 
to meet changing eircumstanres 
and there is complete flexibility 
on ther evel of cover and invest- 
ment and the size of premiums. 

The venture last year into the- 
unit-linked life market, by Scot- 
tish Amicable Life Assurance 
Society results In £25m of single 
premiums being received from 


the launch on February 26 and 
£200,000 of annual premiums 
from September 30. 

The Society had a very good 
year in 1981 for many sectors of 
its business with new annual 
premiums advancing over 40 per 
cent from £32. lm to £45.4m and 
single premiums more than 
doubling from £25 .2m to £56.2ni, 
thanks to the success of the unit- 
linked launch. 

New annual premium s on indi- 
vidual business, in the UK rose 
12 per cent from £16.4m to 
£18.4m, with premiums on its 
self-employed pension contract, 
Flexipension, improving 16 per 
cent to £4.lra, while premiums 
on its endowment mortgage 
business rose 30 per cent to 
£4.2m. 

In addition to Its linked 
business, self-employed single 
premiums improved over 80 per 
cent to £6.7m, and executive 
pensions by nearly 60 per cent 
to £3.3m. 

New annual premiums on the 
managed fund operation SCAMPI 
more than doubled last vear 
from £9,5m to £19.8m, while 
single premiums were 12 per 
cent higher at £17.5m, against 
£15.6m. .. 

There were 52 new schemes 
including 47 new clients to the 
Society. New annual premiums 
for insured schemes were un- 
changed at £4-7m. while single- 
premiums declined slightly from 
to £Lj9m. 

The Society had a ‘good year 
with its' Australian business 
with annual premiums up £frn 
to £2J5m. 


LONDON TRADED OPTIONS 

■fan. 11 - Total Contract* 1,466. Call* 1,166. Pots 271. 


Option 


|Ex , rdse|cioBlng| 


BP Ce) 

BP (c) 

- BP <c> 

BP (cl 
BP (pi 
BP <p> 

BP ip) 

BP (p) 

CU (ci 
CU <cl 
Cons. Gld (c)| 
Con*. Gld fell 
Con*. Gld (pif 
Ctld*. (c) 
CtWs. (c) 
GEC (cl 
GEC (c) 

GEC (c) 

GEC <p) 

GEC Ip) 

Gr*d Met fell 
Gr*d Mat (d 
Grid Met (pfl 
Grid Mot (p) 
Grid Met lp)l 
ICI (c) 

ICI -(e) 

ICI (c) 

ICI (pi 
Id (p) 

Land Sec. (cl 
Mk* & Sp. (oil 
Mk* ft Sp. (c)[ 
Mka£Sp.(ci) 
MK*&Sp.ta) 
Shell (c) 

Shell (pi 
Shell (p) .. . 


price 


280 

300 

330 

360 

300 

320 

330 

360 

120 

130 

500 

660 

420 


Jan. 


offer 


IB 

4 


9 

26 


Vd. 




8 

108 


86 

2 

30 

10 

10 


April 


28 

18 

10 

6 

— 12 J 


42 

74 

14 

8 

17. 

8 

1 


70 

80 

760 

800 

860 

760 

800 

160 

180 

160 

180 

2QO 

260 

280 

300 

280 

300 

288 

110 

120 

130 

140 

390 

390 

420 


61g| 

60 

18 

2 

2 

13 

1 

4 

21 


44 

24 

6 

2 

6 

9 

24‘ 

14 

5 


6 

a 

36 


26 

3 


0 


2 

30 

135 

3 

1 

30 

12 

eS 


87 


81* 

4 

82 

47 

20 

12 

27 

29 

IS 

7 

14 

24 

54 

36 

19 

11 

18 


^•TSS?lm 


IS 

19 

1 


July 


Equity 
n Irian 


28 

17 

9 

30 


60 

74 

23 

16 

37 

16 


a*" - 


- Il26p- 
-- i484j».- 


2 

14 

7 


28 

16 

11 

51*1 

24 

22 

42 


22 

37 


10 

11 


12 

71* 

107 

64 

37 

22 

33 

34 
20 

9 

16 

26 


62 

46 

30 

12 

22 


- .1 


77p 

I807p 


32 
241*1 
16 I 


lBlp 


JKMp 


- |890p 
153p 


3 

- 1 


Barclay* (c)l 
imperial (cV 
Imperial (ci 
Imperial (c) 1 
Imperial rpij 
Lasmo <oi 
Lawno (cl 
Laamc (c) 
Lonrho (e) 
Lonrho (e) 
Lonrho (o) 

P*0 (oj 
P*0 (c) 

P ft O (cl 
PftO (c) 

P ft O fcj 
Racal (c) 
Racal id 

Racai (pi 
Racal Ip) 
RT2(c) . 
RT2 Id 
RTZip) 
VaarRfs (Qjj 
Vaal Rfa. <oV 
Vaal Rfa. ip)J 


460 

60 

70 

80 

70 

420 

460 

600 

70 

80 

90 

100 

110 

iao 

130 
140 
420 
460 
420 i 
460 i 
420 
460 
420 
60 
70 
60 


February 


34 

32 

42 


15 

13 

Bl*| 

11* 

4 

12 

8 

6 

12 

4 

1 


31 

46 


3 

18 

16 


May 
25 
141*1 


3lJ 

6 

32 

20 ' 

15 

14 

7 

3 


58 

28 

19 

14 

10 

23 

7 

17 

40 

30 

13 

10 

6l*J 

21* 


7 

18 
33 
16 
6 
26 
26. 
6 
■ 3. 


34 

20 

10 


C=Call 


43 

33 

28 

19 
16 
43 

20 
22 
45 
50 
.27 
17 

7 

3 

48,1 


62 

'30 

10 

■ -3. 

2 


12 


4 

20 

42 

17 

6 


August 
40 
161*1 


11 
51* 
71*| 
47 
3 5 
20 
17 
10 
-4l*| 


1 

86 


(394p 


35 

28 


■25-H 


67 

35 

28 

SO 

65 

40 

24 

9 

44, 

7 


11 


k28p 


i 


134p 


364 


P— Fut 


i- 


‘ 5! 








M. j. H. Nightingale & Co. Limited 


27/2B Lorn Lena London. EC3R 2EB 


Telephone. D 1 ^ 2 rj 2 l 2 


1981 -82 
High- Low- 

119 100 


75 

51 

200 

104 

129 
68 
78 

102 

ICS 

113 

130 
334 

59- 

222 

15 

80 

44 

103 


62 

'33 

187 


97 

38 

46 

93 

100 

S5 

108 

256 

SI 

.167 

10' 

66 

29 

77 

212 


Company 

Afil Hldgc. tope OILS 

Air* prung 

Armttage & Rhodes 

Bardon Hill 

Deborah Services ....... 

Frank Horse! I 

Frednrfck Parker 

George ‘Bleir 

•pc 

laia Conv. .Rraf. 

•Jackson Group 

•lamas Burrough 

Robert Jenkins .....J.. 356 

Scruttons "A” ’ ......... 65 - 

Today & Carlisle ...... TB 7 

Twjnloek Ord.- 13 

Twmlock 15pc UltS 74 

Un flock Holdings 33 

Water Alexander . ...... 7 7 - 

W- S. Yeats* Jlfl 


• Grose Yield Folly ' 
Price-Change -dhr.(p) ,% Actual taxed 


119 
70 _ 

r 46' : —. 

200 _ 
be .~. 
127 — - a . 


48 
• 96 
105 
97 
114 


104) • 8.4 
.*■7 6.7 MJi 

4.2 — fl.3 32 ' 

9.7 4.9 9.7 

■5A -ft*., 4J 

-9A ; so-- n. A"’ 

1.7 2.5 29.6 



7.3 7J5 

16.7 . Mfi 

7-0 -7.2 
2.7 , -7.8. 
3L3 12.2 
Bn 941 
10.7 '. * 4 , 


.-e.8 ioa 


wn anj: 

sis 10^: 

Prlqe* now available tm- Prettel pa$4 



ERMITAGE 

EXTERNAL 

FUND 


7th January 1982 

Bid U-&S14M4 

Offer U&S147.92 




THE THING HALL 
USM INDEX 

116*5 (— OJB). 
close of business li/l/gjJ 
BASE DAT£ '!G/ii/80 2M 
Tel: 01-638 1591 


1. •% ■ 


CORAL INDEX ;: 

Close 525-530 (— Z). 








.---•-A 



19 


■-/Vr « -c ' 


^ames^ra^a^y; JaBnaiy. 12 1982 


UK COMPANY NEWS 



V . t 


M M . 

li M i f a. 


; moves 


GROUP SALESbFSS# 


anxMceuticafe". 'gnwp. 


' \ \ 17Ti]T\: rk i*±T 


wO^m-'for 





BOARD MEETINGS ; 

'~to j *fe v £Sr!S^3 , S5S&.«o , S 

&*ar££tiA^' ‘ •» 

• -tIMiMy fwtd' W .'Ae T»«imbii-.'[jf^boffl- 






-Witsrojav 


FM S*gs!aff 




i »jrj> • , iTiTj.'i' i»ifiiuIT 


■B B WBB 


[pT^yT S 

'- i_u_^iAiLr -i -_i7n ■ 

^ ^§Si Sii3G5iB3 

E M : V - M #1 

mmmm 

KggggH a 

|?H ^7 1 


underwater^ acoustic equipment 

: ‘ As already announced, merger 
. by ORE with its 
former ultimate holding group 




Equipment Inc; 
jRwrea "bill the 
UL&-aaf..tiie- British concerns 
vllt eoatinue ■ to cooperate and' 
pool sfbefe of certain equip- 


ssprrgE 



EXCHANGE 


Last Vot; J Last StoeR J 


GOLD O ' 1 K4D0 
SOLD “b . 9429 

GOLD C " '-, 9450 . 
GOLD P ■ «37§ 

GOLD P • *«* 

GOLD -P - «25 

GOLD P . • «478f 
183* ML 81 87 -81 
C F.107^0 .•_"{ 

O JMOKQP - • j 
18 ML 8186-88: - ; 
PF.100' - \ 

9 F.108J0 ■( 

10H NLSO 86-95- 
C FJB7.6G f. 


.16- 1.5QA 
183: 7.60 

83 r 18; 
.9; , 30 
6 85 e 


78 25' 

io xa 

85,, . ’ 8, 

18 13 

6 - ■ • 26 i 


8 f . 33 A] 9388 

2 -T : - 


5 16.50 J, 

s: ae^oA .. *. 

2 .48 . _ 


ii 4 j — , i =;.i s i s r a r° 


ABN C 
AKZO C 
AKZO C 
AKZO C 
AKZO P 
HEIN C 
HOOG O 
HOOG 0 
HOOG P 
KIN C 
KLM C 
KLM, •© 
KLM C 
KLM P 
KIM P 
KLM P 
KLM P 
NEDL O 
NEDL G 
NEDL P 
NEDL P 
NATN P 
PHIL G . . 
PHIL C . 
PHH. C 
PHIL P . 
PHIL P 
HD- G; 
RD C 
KD G • 
RD P 
RD R 
RD P 
UNO. G. 
UNIL O 1 
UNIL P 
UNIL P 


; F.2801 

F^Oj 

-F^a^ 

F.aa) 

' -F.6BJ 

F.17.9W- 
F,l?.5pr 
■ FJBdl 
. F.100 

:. FrllD 

■Mg 

F^floj 
FOOO 
■ F.na 
•- F.140 
F.150) 

- F.isa. 
■- F.140 

F.llOr 

RBOf 

FJ850 

- . F^a 
.. F,a«- 

Eieoj 

F*i^ 


. .-> — t -U 

!•*».■ . 

Z6^ . *4^ . 

287 , 1.9QM 
608 - o.io ; 

. 18 1.MT. 

16 2.10‘- 
51 0.10A1 

20 O.BOBJ 

M. 0.10^ 


100 f 0.50 I 

5-ll.4CL-J 

101- 1 1^0~f 
Bpiii ; 


jos.'j a jo; 
mli jo 


sLU.K c .; seal 

TOTAL VOLUME 4K 
A= Asked 


37 SJO 
12 IB- i 


27 1 5J0B^ 
11 I X.40 j 
278 1 t40B| 
35 [ 0.10. 


.82 . 1J0 
37 4.80 

113 OJO 

83 0.20 

31- ® : 

22 16.60 - 
33 1J01 


io \ OJO 1 
*Fab. 

-"j " - .1 

CONTRACTS: 

r B=BW 


6 CK 1J0J 
SO. 2.1D* 4 
In Jtt. BO- 

37 5J6 

ltt 3: 
80- 1.40. 

ea : o jow 

41 2.80 

is ajor- 


■J f pj7Jo; 

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BIDS AND DEALS 


Lancaster Carpets buys 
Homfiray from receivers 


wwt aireouuw* ora 

■ iMttNly iwid ' ior Ujb -'of ^OOfl- 

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'dmiaty an fast ' yaer*j( r vm«* 6#s.' •" 

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IBtSfhnS— K^. -O; .- Sosutarw' Inwr- 
«wi«»sLv. -CMacippiMti Aasccfstsd 

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,Ffe»te*- , A»JslBW««s4.TIn -Mina . oJ' 
NKNrls. Bstt- Bras* , feMMSon CkmsI 
Trust. KsonJnn. Mo*)! 1 .: Uoqah XHapur," 
OskwowC SGB., , v * - - . . - 

in*^ 0 ™*^’** 

H*l*« ..Jan. .16 

Inchosps- JhkJS 

? wlwi . Jaru 16' : 

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BosOmpts EitgtffwSni' - .-/J Jan. 20 , 
CocwnfuBmt HsnjWsbsrat fabJ - 17 I 
> Kershaw . 4 m. ;25 

Rank;. Ora«w»(»oi 1 i i.-, fc *_-«.Jw. 25 


bodjding'' for 1 derelopdng drug 
■ safety at the Wellcome Research 
Laboratories in &e US. vL. major 
factory L eTteBsion fe nearing 
compleflcfr ln ftdtefeten; while ini 
Montrejd zworjc has started on 
«bd itaeeatUxa "tit-ttM factory and 
- office^ of ihe.Qanadlan coftbpaoy. 1 

- Sqwittf. from "ftre UK ; were a 

record st'. £U6Jm,- compared i 
wittt -- ‘ -•- 

- Research and developmect -ex- ^ 
pencHtsre increased from £47.3m 
,'te £$2 bl--l**; \ 

-cbalnriin reports that die 
group V finances continue is a 
strong -posation -and adequate 
Wquid .; funds -/and undrawn ! 
facilities, including . certain .term 
moneys,, '.-exist to - fund 1 . future 
Known capital expenditure. - 

er target and 
er growth 

»derably -' exceeded : t6& profit 
goals - management set itself a 
year agq when' the dunpahy came 
to the market under Rule 163 (2) 
ty way & a placing. ;. . . v •. 

*; ;!lfie . figures include four 
months of^ ^ J.-JGUs Electronics 
foilowidg its acquisition Id hfay. 
MHs. wfcic^ carries on busine* 
under . - We rame' of : Bell 


BY DUNCAN CAMPBQL6MITH 

Henifray and Company, ; We 
West, Yorkshire carpet manufac- 
turer, which went into receiver 
ship: on. October 30 v has been 
bou^t from the receivers by 
Lancaster Carpets, i subsidiary 
of. STottlp^Man^Maiurficturing- 

No. price, bas ' .been disclosed 
for the "sale, wfricirwiLi pass over' 
We property and assets of 
Harhffdy’s mam pfeht at Grange 
Road; Batley. A3 jsO Jndaded will 
be plant and equipment from the 
company's -pi ant at Birstall. 

Mr- Michael Jordan. We re- 
ceiver,' * said We business had 
been sold as a going concern; 
Final trite are also progressing 
towards' a: sale -of the Birstall 
property. Tbe company’s other 

maj n plant at WilHn gtnn is .We 


subject of prel'rannary dis- 
cussions with an outside bidder 
and is alternatively the object 
of a passible management buy- 
out- . 

The chairman, managing 
director and financial director of 
Lancaster Carpets were in meet- 
ings together at Somfray's head 
office yesterday, but had no de- 
tails to reveal of their .future 
plans for the company. 

- Mr David Marlow, the manag- 
ing director, said they were 
“•veiy busy getting the business 
going again” and would have 
more to say wrttan a few days. 

As normal in the circum- 
stances of a sale by receivers, 
Tfnm fray’s entire workforce was 
ixmde - redundant prior to the 


sale- But Mr Jordan said he 
hoped as many, jobs as possible 
could now be preserved, at 
Grange Road. 

It is thought unlikely that they 
will include any of We present 
management, which includes 
several directors brought into 
the company only last year, or 
of the Gillam family -whdch- 
owsed over 40 per cent of 
Bomfray. 

The company’s Australian sub- 
sidiary continues to trade 
profitably from its one plant 
near Melbourne and earned, 
pre-tax profits around £im In 
1981. Mr Jordan said be expects 
rt to be available for sale 
■'within the next month or so.” 


Renwick In Western Fuel deal 


Renwidc Group, -controlled by 
South African businessman Mr 
Graham' Bed; through his' pri- 
vate . Kangra International com- 
pany; IS selling its half share of 
Wq fuel- distribution business" of 
Western Fuel to its partner 
British Fuel fpr £4.13m cash.' 

British Fuel is a company 
jointly owned by AAH, the fuel 
distribution, building supplies, 
and - pharmaceutical products 
group, and ; the - National Coal 
Board. 

The sale proceeds received by 


the Renwick Group will “ sub- 
stantially strengthen the groups 
financial base and resources and 
facilitate We future development 
of -We other of its businesses.” 
Last September. Renwick dis- 
posed of its loss making freight 
division for just £L 
Western Fuel carries on the 
business of wholesale and retail 
solid fuel distribution principally 
in the west and south west of 
England. Net tangible assets of 
We company at March 31 1981 
were £2.66m and profits before 
tax for the year ended on that 


KCA looking to sell 30% 
holding in Berkeley Ex. 


Mr Paul Bristol, . chairman and 
chief executive of KCA Inter- 
national, the oil- servicing and 
contracting group, yesterday 
confirmed -- that We v group’s 
strategic. 30.36 per cent' holding 
in Berkeley Exploration and 
Production was up for sale 

Berkeley was formed late in 
1979 to take over the exploration 
activities 1 of BW Sea. Search, a 
wholly owned subsidiary of KCA. 

Mr Bristol said that the group 
was looking for - a buyer for the 
groapX holding of 1.5m shares 
and was u talking to a number 
of parties -at the moment” 

- KCA is hoping to get around 
530p each for the shares which 
would realise some £8m. The 
Berkeley _ shares closed " 20p 
higher at 36Sp yesterday. 

Mr Bristol said that the group 
had shown a good profit on We 
Bertetejr holding: .1* acquired its 


original stake in what was then 
Sea Search in 1973. KCA’s hold- 
ing increased to Its present level 
when Berkeley was floated off 
in February 1980. 

Mr Bristol said that KCA had 
“ lots of. expansion plans 
particularly in the U.S.". He and 
KCA : director Mr Colin Orx- 
Ewing (who is also executive 
chairman of Bericeley) plan to 
visit the U.S. shortly. 

HABITAT/ 

MOTHERCARE 
The Director General of the 
Office of Fair Trading is expected 
to recommend to We Secretary 
of State for the Department of 
Trade that Habitat should be 
allowed to proceed with its 
£117. 6m bid for Mothercare. the 
specialist retail group, without 
any reference to the Monopolies 
and Mergers Commission. 


Initial investments for 
English & Caledonian 


English and Caledonian Invest, 
moils, the venture capital 
organisation launched eight 
months ago with an initial 
capital of some £5 m, has made 
its first two 'investments, both 
in tfbe macro-cmiqHiteir industry. 

EngHsfa has taken a 12 per 
cept stake in C?I7 Computers, of 
Woking, and a holding of just 
under- 10 per cent in Data Design 
Techniques. The combined cost 
is over.£Ini. ' 

Founded -in 1973 by two former 
senior executives of an American 
microcomputer company, CPU's 
sdes tn the June 30 1981 year 
were xone fi4m. In -the current 
year these - are expected to 
expand, by a fm her 50 per cent 
-Data Design was founded in 
1971 by three executives who had 
previously worked as speci^hst 
engineers for a number of UK 
'and American. computer 
companies. Sales for 1980/81' 
amounted to £L74 maud are 
showing a ” substantial increase 
this year," it is- stated. 

The majority of* shares in 
English are owned by investment 
companies: whose funds are 
administered 1 by Gaitmore 
Investment, with a 'significant 
stake bdd by Scottish United 
Id vesture. 

- English "says-' that as primary 
investment areas are likely to be 
consumer ctoables, food and 


leisure, electronics, computing 
and related industries. It intends 
to avoid We property, natural 
resources and heavy engineering 
sectors. 

KEZ STAKE IN 
WARD TOPS 30% 

Bio Unto-Zinc’s stake in Thos. 
W. Ward has passed the 30 per 
cent mark following purchases in 
the market of 1m shares last Fri- 
day and a further 1,775,000 shares 
yesterday, all at 23 Op per share 
cum dividend. 

RTZ now holds 3055 per cent 
of Ward, not including accept- 
ances received in respect of its 
current bid. These amounted to 
just over 3 per cent on Janu- 
ary 8. Under Rule 34 of We Take- 
Over Code, RTZ will announce 
today the total of acceptances re- 
ceived to date. It must also post 
today its revised terms for Ward 
under We bid due to dose on 
January 26. 

MT. CHARLOTTE 

Mount Charlotte Investments 
and its subsidiaries continue to 
trade satisfactorily in the second 
half of 1981, it Is stated in a 
circular- giving full details of the 
purchase of the London Ryan 
Hotel. 


date amounted to £1.91m. 

In its first full year of trading , 
after the partnership was estab- \ 
lished in 1968 profits amounted to ! 
£411,000. I 

AAH is confident that the 
closer relationship will lead to , 
improved trading opportunities 
for both Western Fuel and 
British Fuel Western is to re-, 
tain its separate identity. 

The Stock Exchange prices of 
AAH and Rod wick were un- 
changed at 86p and S5p 
respectively yesterday. 

A. Guinness 
sale to 

Grampian Hldgs. 

Agreement has been readied 
for Grampian Holdings to 
acquire the Gniones Veterinary 
Group from Arthur Guinness 
Son and Company for approxi- 
mately £lm in cash. Pre-tax 
profits- of the companies being 
"sold — Caledonian Veterinary 
Holdings, C — Vet, HMC (Manu- 
facturing Chemists) and 
Veterinary Pharmaceuticals — 
before interest totalled £353,000 
for the year ended August 30 
1981. They are engaged in the 
manufacture and distribution of 
animal medicines. 

Reed to acquire 
Essex County 
Newspapers 

Reed International, publishers of 
the Mirror Group newspapers 
and an extensive range of maga- 
zines, is to take over Essex 
County Newspapers. 

Essex County Newspapers pro- 
duces seven weeklies and one 
evening newspaper, circulating in 
the north Essex area. The 
purchase will, like all newspaper 
takeovers, be liable to reference 
to the Monopolies and Mergers 
Commission. 

Reed already jointly owns with 
Essex County Newspapers the QB 
printing works at Colchester. The 
purchase is Reed's second recent 
development in the provincial 
newspaper field. Last year it 
agreed to buy the Berrow's 
Organisation from News Inter- 
national, publishers of the Sun, 
News of the World and Times 
Newspapers. 

MONSANTO SEEXS 
COLE HOLDING 

la response to an approach 
from certain directors of R- H. 
Cole, Monsanto has sold to them 
and the Finance Corporation *or 
Industry its 21.3 per cent share- 
holding in Cole. 1 

While specific terms of the sale 
were not disclosed, the price was , 
based on current market values. 1 

Dr J. W. Barrett, the chair- j 
man, acquired 100,000 shares, Mr , 
C. W. Fone and family 180,000, 
and Mr C. J. Cham mas 100,000. 
FCI has bought an 8.23 per cent , 
stake. 

Cole incurred a loss of £343,000 
in 1980, compared with a profit 
of £678,000. In the first half of 
1981 the deficit was £295,000. 

The shares closed unchanged 
at 48p yesterday. 


Lion Brewery Blackburn ■ ' 


EttratethFrttheRBpoftandAoebivMtD^rdOrtobirtSWI. 




i98i/: 
{53wmks); 
30910 
54W4 
3,147 
18.48p 
’ fijffip . 


.; 1980 •_ 

[52 weeks) 

25,805 

•: ,4iM8 
2507 
1533p 
^JSSSpr 




% Mr. Pkricktownsend, ■■ T- 
jn'fnktf)ecemtNtr,i98f.> ' 

* Incrwseinlim^ 

but a.feo tolncwp 

continued to gain ground With an increase of nearly 4%. 

Sales afwfne inwassd. and hotels and restaurants division hdd 
t^wstiiiidCDrittSxfiBdlopfo® 8 * ' — ^ 

Ar^iuBtionofwirJioHised houses arribrewwypiwihsasadrteti 

Tha^^ issue announced In Decern _^ eg ^ 





Stxrria HoMfngs — Park Place 
Investments has' disposed of 

450.000 ordinary, leaving its hold- 
ing at 2.13m (&24 per cent). 

Reliant Motor' « TJL Trading 
Bas purchased a- further 25,000 
ordinary.' raising its holding Io 

970.000 "(17.52 per ceat). 

HBUIte Holdings — Kleeman 

Industrial Holdings, has disposed 
of .its entire holding °f 18&200 
ordinvy, share?. 

H. . Brammer — - Prudential 
Corporation: Group of Companies 
now holds 1£44*1S& ordinary 
(9.96 per cent). J. E. Head, 
director.'has sold 12,000 ordinary 
shares and is now beneficially 
interested in 265,fS5 ordinary 
shares. 

Peter Brotherhood— The share- 
holding of Morgan Grenfell 
Special Exempt Fund registered 
in the name of MGX Nominees 
“AT account has Been increased 
from 314,000- to. ffl4.Q09 ordinary 
sharos'(6-5I per cent). 

..Rigl ilwisp - Following- ■ recent 
purchases and the 'acquisition of 
Jazerite. Holdings, Crosby House 
Group and . its subsidiaries are 
now ’ interested ' . in . 871,120 
ordinary (60.96^ per cent). 

tjml- House Publications— 
Directs -G. - C. Burt has sold 

10.000 shares. A sale of 100,000 
shares at - 245p to meet CCT 
liability - in Tespect of a dis- 

I cretionaiy settlement gives effect 
to following: G. C- Burt— as. a 
| trustee and joint holder with 
f M. A. Bore— and J- E. Bore, as 
, husband of a trustee, lave had 
i their nonbeneficial . interests 
reduced by 100,000 shares eacb; 
M. A. Bore— as a tnstee and 


SHARE STAKES 

joint holder with G. C- Burt— 
has bad her interest reduced by 

100.000 shares, leaving her 
interest at 9.53 per cent 

Trust Securities (Hldgs.)— 
Ensis has disposed of 40,000 
noo-partidpating convertible 
shares. 

Estates Property Investment 
Company; Courtaolds Pension? 
Common Investment Fund dis- 
posed of its 6.1 per cent interest 
in the ordinary shares. 

Dares Estates: Mathay Invest- 
ments acquired 70,000 ordinary 
shares. Mathay Investments rep- 
resents a beneficial interest of 
Mr David Sidi, a director. 
Following this acquisition, 
Mathay will be the registered 
holder of 2^59,751 shares (9.05 
par cent). . 

Staffordshire Potteries (Hold- 
ings): Temple Bar Investment 
Trust now hold .200.000 ordinary 
(3.56 per cent) and 300.000 10 
per cent. convertible cumulative 
redeemable preference shares 
(IS.67 per cent). 

Bnrco -Dean: - Charente Steam- 
ship Company has increased its 
shareholding to 2.37m ordinary 
shares (28.03 per cent) by the 
purchase of a farther 25,000 
ordinary, 

Ackroyd and Smith ers: Mer- 
chant Navy Officers Pension Fund 
is now the beneficial owner of 

51 0.000 ordinary shares (5.06 per 
cent). 

Forminster: E. Youell, director, 
bas disposed of 75,000 shares at 
11(h) leaving • bolding 227,892 
shares (6.15 per cent). H. £ roo- 
st ein, dir ector, has disposed of 


175,090 shares at IlOp leaving 
holding 1.01m shares (27^3 per 
cent). Prudential Corporation 
Group has acquired 180,000 
shares making a holding of 
352,500 shares. 9.51 per cent 
Haahros Investment Trust— 
J. H. Jacobs, director, disposed 
of 100.000 shares, and now holds 
595,214 (1.12 per cent). 

Concord Rotafiex — Company 
has been informed that Sutar 
Electrical owned 925,000 
ordinary at December 31 (8.4 per 
cent). 

. Industrial and General Trust- 
National Coal Board staff super- 
annuation scheme and the Mine- 
workers' pension scheme now 
hold 28,085,165 ordinary (13.02 
per cent). 

Glebe Investment Trust- 
Trustees of the National Coal 
Board staff superannuation 
scheme, the Mineworkers' pen- 
sion scheme, the Coal Industry 
benevolent trust and the Mining 
Contractors’ pension scheme have 
interests in 36,224,043 ordinary 
(22.15 per cent). ■ 

IV. EL Smith and Son (Hold- 
ings) — Lord Hambleden, direc- 
tor,' as a trustee disposed of 7,250 
“B” Ordinary, holds now 

295.000 Ordinary (0.42 per cent). 
Harvey and Thompson — Bolton 

Bouse Investments has sold 

200.000 Ordinary. 

Glasgow Partition— 3Jr James 
Glasgow's associated companies 
hold a total of 307,738 shares 
(35.622). 

Trusthouse Forte — Mr E. 
Hartwell, director, transferred 

45.000 ordinary. 


MINING NEWS 


U.S. power company files 
uranium anti-trust suit 


BY GEORGE MIUJNG-STANLEY 

LONDON’S Rio Tinto-Zinc and 
two of its subsidiaries have 
beds named in a summons by a 
U.S. power company, alleging 

antitrust activities in the 
supply of uranium. 

The Washington Public Power 
Supply System OVPPSS) has 
served a summons and complaint 
against RTZ, RTZ Services, Rio 
AJgom and several other com- , 
panies in the U.S. District Court 
for the western district of 
Washington. WPPS5 is a muni- 
cipal corporation supplying- 
power in the state of Washing- 
ton. 

Rio Algom said yesterday that 
the complaint alleges that "the : 
defendants ‘ and their co- 1 
conspirators have combined, con- ! 
spired and contracted together 
to, among other things, restrain 

Tin production 1 
in December 

SOME GOOD tin concentrate ' 
output figures are announced for ; 
December from the Eastern tin : 
producers. 

Following the setback caused 
by the temporary closedown of 
the dredge, Tongkah Harbour 
has made up 6ome lost ground 1 
and the total for the first six 
months of the current financial 
year comes out at 198 tonnes 
against 212 tonnes a year ago* 

Berjnntal’s better December . 
output makes an er^t-month 
total of 2,451 tonnes against 
2,273 tonnes while the enlarged 
Malaysia Mining Corporation 
(formerly Malayan Tin Dredg- 
ing) has produced 4,196 tonnes 
over the past six months. 

Sun gel Besi did better last 
month but the cumulative total 
for nfne months is still well 
down at 663 tonnes against 1.052 
tonnes ' a year ago. . On the other 
hand, Ayer Hitam did less well 
in December but its six-month 
total is still ahead at 920 tonnes 


against 724 tonnes. 

Dac 

tonnaa 

Nov Oct 
tonnes tonnes 

Aotcam 

123 

77 

109 

Ayer Hitam ... 

235 

250 

133 

Berjuntai 

338 

312 

277 

Kuala Kampar . 

8 

14 

12 

MMC 

747 

694 

742 

Sungm Besi ... 

80 

63 

61 

Tongkah Herb. 

81 

S 

34 

Tronoh Mines . 

48 

45 

59 


Gopeng did well in December 
and its three -mouth total 
amounts to 438 tonnes against 
387 J tonnes. 



Dec 

Nov 

Oct 

Sept 


tonnes tonnes tonnes tonnes 

Gopeng ... 

. 157V 

141V 

139** 

148V 

Mambang . 

574 

55 

42V 

38V 

Tanjong ... 

12 

20V 

17V 

18 

Panqkalon . 

7h 

6 

5 

5V 


Finally, Cornwall’s Geevor is 
pressing on gamely and has pro- 
duced 945 tonnes of black tin in 
the past nine months to end* 
December compared with 853 
tonnes in the same period of 
1980. 


trade and commerce lit the min- 
ing, nulling and sale of 
uranium * within the U.S. and 
abroad. 

The complaint ’claims that the 
defendants’ actions are in viola- 
tion of Section 1 of the Sherman 
Antitrust Act 

In addition, WPPSS is seeking 
the. termination of a uranium 
supply contract with one of the 
named defendants, and damages 
of an unstated amount against 
all the defendants. 

Apart from the RTZ group 
companies, the concerns named 
in tiie complaint are understood 
to be Western Nuclear, Phelps 
Dodge, Gulf OH, Gulf Minerals 
Canada, Kerr McGee, United 
Nuclear, Homestake Mining and 
Getty OIL Western Nuclear is 
believed to be tire company with 

Cleveland Potash 
faces shutdown 

A THREE-WEEK shutdown, 
starting tomorrow, is planned for 
Britain’s only potash mine, the 
long-struggling Boulby operation . 
in Yorkshire of Cleveland Potash 
which Is now jointly-owned by 
Anglo American Corporation of 
South Africa and London’s 
Charter Consolidated. 

The threatened UK rail strike 
is regarded as the “final straw” 
for Boulby by Mr Frank Chilton, 
the mine's general manager. In 
a letter to the 880 employees he 
points to the depressed market 
for potash which has been hit 
by imports from East Germany. 

This hag resulted in potash 
stocks rising to 127,000 tonnes 
at 12 locations around the UK, 
a level which puts the mine “in 
real danger of grinding to a 
halt.” “In addition there are 
restrictions as to -the amount of 
material that may be moved 
(from Boulby) by road, and rail 
movements have been hampered 
by the bad weather.” 

The employees at Boulby will 
be paid 80 per cent of their 
basic wage during the shutdown 
and the mine will resume pro- 
duction on February 3. 

Charter has long since written 
off the value of its stake in 
Cleveland and has been relieved 
of any further responsibility 
with provision having been made 
for costs arising in the event of 
a final closure of the mine. 

COAL PROJECT 
IN INDONESIA 

The Indonesian Government is 
to put up U.S-S251.7m (£132m) of 
tbe S1.36bn cost of a 3m tonnes 
a year coal project at Bukit Askju 
in southern Sumatra, with the 
remainder coming from inter- 
national aid agencies. The World 
Bank has already announced that 
it will lend the project Sl®m. 

The coal produced will be used 
to fuel a power generating plant 
at Suralaya, western Java. 


which WPPSS wants to end its" 
supply contract 

Rio Algom, which produces 
uranium in Canada, is owned as 
to 52.7 per cent by RTZ. The 
Canadian company said yesterday 
that it “denies the allegation as' 
being unfounded, and intends to 
defend the lawsuit vigorously.” 

Several of the companies 
named in the complaint from 
WPPSS were also involved in 
earlier anti trait litigation. These • 
earlier antitrust litigation. These 
otiier U.S. utility, the Tennessee 
Valley Authority, and Westing- 
house Electric, a leading manu- 
facturer of nuclear power plants, 
alleged that a large group of 
U.S. and foreign producers of 
uranium conspired to operate a , 
cartel. 

Tbe various lawsuits were 
settled out of court last year, - - 

Jordan hopes 
to develop 
copper mine 

THE Jordan Natural Resources 
Authority has been in touch with 
international consultants about 
organising a detailed technical 
and economic feasibility study 
on the establishment of a pilot 
plant to exploit known copper 
reserves in Wadi Arabs, reports | 
Rami G. Khouri from Amman. 

The deposits, at the southern : 
tip o£ the country near the Red 
Sea port of Aqaba, are believed 
to contain about 5m tonnes of 
copper ore. The government 
plans to build a pilot plant pro- 
ducing 3,000 tonnes of copper a 1 
year. 

The estimated cost of the pro- 
ject, to be implemented during 
the current" five-year plan, iff 
around U.S.S25m (£13m). Much 
of the financing is expected to 
come in the form of inter- 
national loans. 

tip, to ; 

AMERICAN oil experts are to 
visit Israel at the end of this 
month to start negotiations on 
exploration rights, according to 
Mr Y. Men dor. Minister for 
Economic Co-ordination. 

Mr Meridor said that a U.S. 
company specialising in second- 
ary recovery techniques believes 
that half of the 300 dry wells 
drilled in Israel could yield pas. 

In addition, the company may 
embark on a programme of new 
drilling, with investment planned 
at Sl50m (£79m) over three 
years, if it can reach agreement 
with the government. 

Local oil experts are dubious 
about the likelihood of all this 
coming to fruition and also about 
Mr Mender's claim that Israel 
is working on a process which 
would sharply reduce the coun- 
try’s reliance on imported oil. 


JOINT COMPANY ANNOUNCEMENT 


ANGLO AMERICAN INDUSTRIAL CORPORATION LIMITED (AMIC) 
DE BEERS INDUSTRIAL CORPORATION LIMITED (BEBINCOR) 

(Both 0/ which are incorporated in the Republic of South Africa ) 

REDEMPTION OF DEBZNCOR 5.5 PER CENT CUMULATIVE PREFERENCE SHARES 

AND 12.25 PER CENT CUMULATIVE REDEEMABLE PREFERENCE SHARES 

It was announced on "January 5 1982 that the Debincor 12.35 per cent cumulative 
redeemable preference shareholders had passed a resolution agreeing to the redemption 
of their preference shares through the issue on a one-for-one basis of preference shares 
in Antic; this redemption being conditional on the holders of tbe 5.5 per cent cumulative 
preference shares agreeing to the redemption of their preference shares. It was further 
announced that the separate meeting of the Debincor 5.5 per cent cumulative preference 
shareholders bad been adjourned to January 11 1982. At this adjourned meeting the 
resolution ratifying the agreement providing, inter alia, for tbe redemption of all such 
preference shares through tbe issue on a one-for-one basis of preference shares in Amic 
was passed without modification. 

It is accordingly confirmed that the following will be salient dates of the redemption 
' proposals as they relate to the 5.5 per cent and 1225 per cent preference shares in 
Debinoor: 

(a) THE RECORD DATE, ie. the date on which: 

(i) dealings in and the listing of the Debincor 5.5 per cent cumulative 
preference shares on The Johannesburg Stock Exchange and The Stock 
Exchange in London will cease; 

(H) dealings in and the listing of the Debincor 1225 per cent cumulative 
redeemable preference shares on The Johannesburg Stock Exchange vtiil 
cease; and 

(iii) it will be determined which Debincor 55 per cent and 12.25 per cent 
preference shareholders will be entitled to receive the new 3.625 per cent 
and new 12.375 per cent preference shares in Amic; 

will be the Close of business on January 15 1982. 

(b) THE OPERATIVE DATE, Le. the date on which: 

(i) the proposals relating to the redemption of the preference shares io 
Debincor will become operative ; 

(ii) the listings on The Johannesburg Stock Exchange and The Stock Exchange 
in London for the new 5.625 per cent preference shares in Amic v.ifi 
commence; and 

(iii) the listing on The Johannesburg Stock Exchange for the new 12.275 per 
cent preference shares in Amic will commence; 

will be January 18 1982. 

In order to enable Debincor preference shareholders to obtain their share certificates 
in respect of their entitlement to Amic shares in accordance with the redemption 
proposals, all preference shareholders of Debincor are requested to surrender their 
preference share certificates or other documents of title as soon as possible to: 


Consolidated Share Registrars Limited 
62 Marshall Street 
Johannesburg 2001 
(P.O.Box 61051 
Marshalltown 2107) 


Charter Consolidated Pi.C. 
P.O.Box 102 
Charter House 
Park Street 

Ashford, Kent TN24 SEQ 


For this purpose surrender forms wiD be despatched on January 13 3982 to the 
Debincor preference shareholders. 

If any share certificate surrendered is restrict! vely endorsed in terms of South African 
exchange control regulations then the Amic share certificate will be similarly endorsed. 

New Antic preference share certificates will be posted: 

(i) on January 29 in respect of documents of title surrendered prior to the 
operative date; 

(ii) within 14 days of the receipt of documents of title surrendered on or after the 
operative date. 

Johannesburg 
January 12 19S2 











20 


FT UNIT TRUST INFORMATION SERVICE 


Companies 
and Markets 


Financial Times Tuesday Januaiy 12 1982 

CURRENCIES; MONEY and GOLD 


OFFSHORE & 
OVERSEAS 

FUNDS 

Ads investment 

ta&dt 708, 8000 Munkn 1 JWtt 

MmO 

Aflwfa* 

llSIS SkMMEI - 





Albany Fund M a aB — n t Dratted 
P.O.Box 73, Si-Hcfio-r^WT. 053*73933 

ARasSFa-iCJl^-j^SM^j-iai Ml 

fir JUocnfar Rod see Ucyi Brt kd. flteneqr. 

Mien Harvey & Ron lnT * *W* W-U 

a Oaring CWB, St Hater, J». C.I. DB34-73741 


&£. Europe OUrgaSeas SA 

?• * * l* ~ 

B^5T^eTffl-fHrL.._ 

BnpeOUfgaUuns-! USSCJ3 HUS 179 

E u r o t ax investments Ltd. 

0727*1* 

Eintex liw. Find HSU IWJl ™~1 — 

F & C MgmL Ltd. Inv. Advisers 
1, Uerew* Poortnw HW, EC4. 01-6234600 

Hnsnrj «■!=• •* 

Prises Jo. & S50y deaftip. 

FWefrty i n te rna t i on al Ltd. 
p,g. BH 670, Hamilton, „ 

s^msr?»^ Kefa ': 

— war 


Am. — ., 

AncdEmUak.un.*_i 

Atlanta 


AHRCattEdg/U 1 

JUBance IntariaHowt Doflor Rcssrves 

Distributor Jm. 4fi (0.000642) Q2A% (UL) 

Artnttmst Securities (C.L) Ltd. (eXOOO 

PABwaB^SLHHMiJwgA 053*76077 


DoflU'S atingTnflt- 


GURnt. 




37, rue 

FtatogJm 


om«| 

•Prte 'ai Dazater 3L 
Japan Fuad SA. 


m 


mg ft Ssnaan Rfagn. 

aewwsss; 

■WB 3 

BB® 5 bw«=I = 


KMmnrt 9eraan Grasp 

^ftfldmhSi^aa 
Guensafine.., 

De.Acajoi._- 
tCBLEwi 

If ft Ct 

KLB.GVtFiAd-_ 

ttttftftJG; 

Etfi 


Save ft Pimps fade naHmal 
pABaxmSL(WKf,jB»7 053*73953 

YenBdntf**t. 



Dollar improves 


THE POUND SPOT AND FORWARD 


Jan 11. 


Day's 

spread 


Ctoss 


(hi month 


•% 

P* 


71m 

mon th* 


1 ».«. 


01-623 aroo 

SJ& 


rniaillilH j Feita 

Ehp**t Feta 


***Jbi8l 4 





J 0J7 
•Jw 7. 0Mtrdrt«j HrdoUoBL 


Schrader Ufa feoop 
Enterprise Hose, Portsnoufc. 
In t mafl w v d Reek 



Unmfeain 

t rey fl y. 


Sterfing 


Deanna on WMaisday. 


037 


1-J - 

Frankfort Trust Investment— GfflfaH 
Wieseoau 3, 06000 Frankfort 


B.1 A Bond Investments AG 

ID, Barersnne CH6301, Zug, Saftatland 

Barer SftL OK. 19 -110070 UMOOf 

Bank of America International SA 

35 Bouteard Royal, UaHohouffl GIL 

.^a*ta*M»n±e B 

Barfa. luL Fund 1112.9 1203 

Barclays Unicam International 

1. ChvinB Crass. S<- Hcfltr, Jersey. 


Free world Fond Ud. 

BuUerfidU BMp, HaraKoa Braude. 

NAV Dec. 31 1 USHSL32 1—4 — 

6. T. Management (U.K.) Ltd. 

Hfli Agents for 



.Min. 

Dc. Grtr. Pacific- — 

Do. Inil. Income , 

Do. Isle of Man Tn — ) 

Do. Manx Mutual - 

Bbhopsgate Commodity Ser. Ltd. 

P.a Box 42 Douglas, 1-s.M. 062«3911 

ARMAC-Jao.4 SSJJ1 56X71 — J — 

.COUNT** Dec. 7-_...|5.M7 — 4 157 

CANRHO” Dec. 7 — EL532 Uffl —1 — - 

MAPSA*_.— _ 09.99 10JOI J — 

Or&ai tow *$lfl ad **£L Next vaL Fdj. L 

Bridge M anag ement Ltd. 

GPO Box 59ft Hang Kong 

SWfcfcLS’W-J a 

Britannia Inti. Investment MngnL Ltd. 

fSJShSsr* *- 

IKS. _ ” “ - - - - - 



vSmSs^nrtftFurdJ 

DaUv Income Fd | 

S teri tep Pe i en teelnl 


Korea InternatlocBl Trast 

F«l M” • Korea Invest. Trust Co lid. 

NAV (Won 7258.62) tDR Value IBSMSOOlOO 
January & 

The Korea Trust 
Mm Investment Trest C 0 .LH. 
no BuHdaa, 1-124 Yddwfong, Seoul, ttxML 
HM Z™ 1 USSliM I+G53 - 

Lazard Brothen A Go. (Jersey) Ltd. 
p.a Botin, St- Kefer, June?, C.I. 053*37361 

Uoyds BV. (C.L) WT Mgrs. 

P.0- Box 195^ SL Hefllw, Jersey. 059427561 
Uw*»Tlt.0Ng» 1 4|W (te WU— J 123 

UqdsTnBtCTtr^-gPB |j»g 1 3538 

Lloyds Bank InfieraattaoL Geneva 

PA Box 43B, 12U Geneve U (SwtetancD 


070527733 


usis^ - 

MMsed 

Schroder MngL Sereins (Jvscy) Ltd. 

J. Henry S ch r od ar Wan A Co. Ud. 
320,OmsMtEC2. 01*5864000. 

asaetj 

OBttfed 

Schroder Unit Trust Mgrs. lot. Ltd. 

Bax 273 SLIhter PBrt, Guerrsqr. 0*8128750 

WatBbr-** ” J 

.Isati 

SEW». 




_ UcasklaL Income. 


Garbnore Invest Ltd. Us. Agt*. 

2. St Mary Axe, Lorebn, EC3. 01-2B33S31 

Gartmcre FM 


(06264588 




, itwnn, Bennuoa. 

t=»“ 

i Jm. On* ret. day FA L 


Brown Shipley TsL Co. (Jersey) Lid. 

P 0. 600(563, St Kdier. Jersey. 053*7*777 

BatterfUri Management Co. Lid. 

PJL Box 195, HamUtan, Bernwta. 

Buttress Eguttf- 

Buores Income- _ . 

Prices u Jan. 4. Not sab. day I 

CAL Investments (loM) Ltd. 

l0t xva 

CALM, itead5ftiwSaBlA^ *^Tii. — 

Candbn SJL 

RO. Box 17R12U Geneva 12. 010 4122 4662B8 

ara ^ 

Capital Asset Mvagens Ltd. 

SL Julians A* & 

Dm Ourency Trust _|101H U7 j0| ...—I 0.91 

Capital Inter na tio na l Fond SJL 
43 BnAevaid Royal, Luxemboura 
CmKaiM-Finl — [ USgMh l+Glfl — 

Central Assets Management Ud. 

Tmnriel Hit, Sl HeBer, Jersey. 0534-73673 

Central Areals— 1£207.45 2D7J0|4O36i — 

Gharteitaase Japhei 

IPattnuBterRon, EC4 01-2483999 

■Mcb id Ok- SL Next sJl cUy Fm L 

Ctawton Comnoditles (Isle of Man) Ltd. 

29, AtM Street, Daugta.l-ai.IM. 062421724 

awi' 

Cmd. Gurenar A 

ComMIl Ins. (Guernsey) Ltd. 

2>.tL Box 157, SL Peter Port Guer 


Japan Fd 

N. AmrnemTo— 
trSL BondFwd 

Gaftmra Fund Ntaagen (I0M) (a) 

P.O.Box 32 DoogllJw Me of Man Td. 0624 29911 

SKBtBSE=B2f 

Assteurarioni GENERALI &pA 
P.0 Box 132. St. Pete Port Guomey, Cl. 

BtiMfSHBId = 

Granville Mmageimnt LMted 

P.a 80 x 73 , St. Heller, Jersey. 033473933 

Guinness Mahon Fd. Mps. (Geemrey) 

PO Bo. 188, SL Peter Port Gowibw. 0*81 23506. 

^-^Tsrm^uL-zi. 1 " 0 

Hernbra Pacific Fund Mg mL Lid. 

2110. Conmidd Centre, Hoag Keng 

SSIrd = 

Hmbres Fd. Mgrs. (CL) Ltd. 

PjO. Box 86, Guano. 0481-26521 

JftJI — J 3 

IntaMtaod 

!5:I^AT^z: nM 

lExctadn nutte cfarae an sail antes. 

Henderson Admin. (Guernsey) Ltd. 

7 New Sl-SL Peter Port. Guemmy 04B1 26541/2 
Anerkan (US cents). P295 13631 I — 

Henderson Baring Group 

80L Gloucester, 13, Redder , Hong Kong 
AusnBa*. 


inon 


Lloyds Bank In hnoU-d , Guernsey 

P.0. Box 136. G uerere y . Ctamd IsMreb. 

^^7 . 1 ~~ i ~ 

M i G Group 

Dew (Roys, Tower HID EE3R66Q. 
AdanUcEx.Jen.5_f ' ' 

Item Unto) 

(Accupi Untfi’C— 

Maiiagt-inuit Into ma Bo na l Ltd. 

Bk. of Bermuda Bldg- Bcmaxte. 809295-4000 

Midland Bank Tit Corp. (Jersey) Ltd. 

28-34, H* St, Sl. HcUer, Jersey. 053436281 

iSm 



Scrimgmr Kemp O ue MngmUJTO 

1, Oaring CrtvaSL Heller, Jeriw. 053473741. 

38=1 ?■ 

Sentry Assurreiee International Ltd. 

P.a Box 1776, Hanifton 5, Bermuda. - 
Managed Fund lUSSUSn* 51®C 1 - 

Signal Life Asstoance Co. Ltd. 

2C Secretary's Lme; Gibraltar 01035073037 
Grantli StretwlB Fd— |£2J6 2061 1 

a- 

Strategic Metal Thut Mngrx. Ltd 

4000 3 HUl Street Dougtai, I0M 062423914 

_ Strategic Me&d Tr. -fUSttHS 0.9701 — 1 — 

Stronghold Mnegenreat United 
P.O.Box 315, St Hriter. Jersey. 0534-71460 ■ 
Sty Trust f 




M in era ls . Ob bt 9m. Fd. Inc. 

P.0l Box 194/ St- HeBer. Jersey. 0SB427441 

tet.7_ r ■ 


MORES Jm. 


.(USS9.49 HUM J — 


Murray, Juhmt n na (lav. Adviser) 

163, Hope St. Cl — ow, C2. 04L22155Z1 

Ocil 



Fd. Mgrs. lid. 
23^S Bread St, St Heller, Josey. 053470041 
High lopane Ftond. 



Commodity Trust 034.72 141811 1 — 

Swinvmt (Jersey) Ltd. 

4. HHl St, Douglas, Isle of Men 062423914 
CopperTrad 10228 329E4G0BI - 

TSB Trent nmds (C.L) 

10 Wharf St, SL Hefiw, Jersey (Cl). 053473494 

— -• -- - VW^ia. IliJiUnne U W 

TOKya r«4|iv nOWRIfS nivi 
imtads Management Co. N.V„ Curacao. 

NAY per share Jan. 4. USS9557. 

Tokyo Pacifto HMgs. (Seaboard) N.V. 
Intlnxs htaragement Co. N.V, Curacao. 

NAV per dare JanA USS67 JS5. 

Tyndall Broim 
2 Not SL, SL Hafcr, Jsraor- 

TOFStJan.7 

tAccum. shares) 

America Jan. 7 

(Actum, shares)——. 

Far Eastern JotlC 
an. dares) 


The dollar was mostly firmer 
in currency markets yesterday, 
reflecting a firmer trend in Euro- 
dollar rates. This foUo-.ced 
Friday's smaller than expected 
fall in U.S. money supply thus 
decreasing the scope for any sus- 
tained fall in interest rates. 

Sterling was fairly weak as the 
market showed some nervous- 
ness ahead of possible strike 
action -by the coaJ miners. How- 
ever domestic interbank rates 
were generally firmer.' reflecting 
a rise in Euro-dollar rates. 

There was little overall change 
within the European Monetary 
System yesterday. The French 
franc was again the strongest 
currency followed by the Dutch 
guilder while the Belgian franc 
remained the weakest menraer. 
although comfortably within its 
divergence limit. 

DOLLAR — Trade weighted 
index (Bank of England) rose to 
108.2 from 107.3 on Friday and 
110.5 six months ago. Three 

month Treasury bills 11-82 per 
cent ( 15.26 per cent six months 
ago). Annual inflation rate 9.6 
per cent (10.2 per cent previous 
month) — The dollar dosed at 
DM2.2S30 against the D-mark up 
from DJI2.25S5 on Fridas’ and 
SwFrl.8535 compared with SwFr 
1.S265. It was also higher against 
the Japanese yen at Y223.25 from 
Y221.35. 

STERLING — Trade weighted 
index 91.0 against 91.3 at noon 
and the opening and 91.8 
previous close (93.3 six months 
ago). Three month interbank 131 
per cent (131 per cent six 
months ago). Annual inflation 12 
per cent (11.7 per cent previous 
month)— Sterling opened at 
S1.9025 against the dollar and 
rose to a best level of 51.9050 
during the morning before fal- 
ling away late in the day to a 
low of S1.S850. It recovered to 
dose S1.SS55-1.SS75, a fall of 
3.25c from Friday. It was also 
lower against the D-mark at 
DM 4.3075 from DM 4.3350 and 
SwFr 4.4975 from SwFr 3.5075. 

D-MARK — EMS member 


fu-cond weakest). Trade 

weighted index 

122 6 *»o Friday and 116-0 six 

months ago. Three-month inter- 
bank 10-475 per cent (1255 per 
cent six months a SO). Annual 
inflation t3 per cent (6.6 per 
cent previous month) — The 
D-mark was slightly weaker aI 
Yesterday's fixing ;n Frankfurt. 
The dollar rose to DM 22714 
from DM 2.2605. with the 
Bundesbank selling a token 
S1.9m at the fixing. Sterling was 
igwer at DM 4-I1S0 from 
i)M 4 .330 while the Swiss franc 
slipped to DM 1.2325 from 
bil 1 - 2366 . Within the EMS. the 
French franc rose to DM 39.43 
per FFr 100 from DM 39285 and 
ihe Belgian franc to DM 5577 
per BFr 100 compared with 
DM 55720. 

ITALIAN" LIRA— EMS mem- 
ber (third weakest). Trade 
weighted index 552 against 55.4 
on Friday and 57.1 six months 
ago. Annual inflation 182 per 
cent (18-6 per cent previous 
month — The lira showed 
mixed changes at yesterday’s fix- 
ing in Milan. Three EMS cur- 
rencies rose and three were 
weaker. Sterling was fixed at 
L220525 down from 12217.9. 
while the dollar rose to LI 215 2 
from LL2I025. 

DUTCH GUILDER — EMS mem- 
ber (second strongest). Trade 
weighted Index 114.6 against 
1142 on Friday, and 107.6 six 
months ago. Three month inter- 
bank 10} per cent (12 per cent 
six months ago). .Annual Infla- 
tion 72 per cent (72 per cent 
previous month) — The guilder 
lost ground to the D-mark at 
yesterdays fixing in Amsterdam. 
The German unit was fixed at 
FI 1.0964 up from FI 1.0960 and 
the Belgian franc unproved to 
FI 6.4420 per BFr 100 from 
FI 6.4350. On the other hand 
the French franc eased to FI 43.2 
per FFr 100 from FI 43.21. Else- 
where sterling slipped to 
FI 4.7170 from FI 4.7480 u'hile 
the dollar rose to FI 2.4935 from 
FI 2.4S00. 


US. 

Canada 

Nethind. 

Golgi ui*i 

Denmark 

Ireland 

VI. Gor 

Portugal 

Spam 

Italy 

Korreay 

Franca 

Sweden 

J«i« ■ 

Austria 

Sums. 


I. 8860-1 .9090 
22410L2-2S10 
a.70*j-*.74S 
73.10-73.80 
14.01-14.11 
12180-12260 
4.30-4-33 
124.00-12S.SO 
184J0-188.S0 
2298-2.313 

II. 00-11.11 
10.90-10.98. 
10.55-10.62 
419-426 

'30.05-30-30 

3.48-152 


1.8856-1.8875 
22420- 2. 2440 
4.71-4,72 
7320-73 JO 
14.01VW.02** 

I. 2215-1.2235 
4.3QV4.31> a 
124.06-124.36 
18495-185.15 
2.2S8VL300*, 

II. 00-11.01 

10-92VH).33b 


OJM^Scpm 
0.05c pm-O.06 dia 
2**-1*iC pm 
3&55c dte 
2Vl**oro pn> 
Q^5-0J38p dlo 
2V1‘iP* pm 
26-IBc dra 
1500c dis 
9>«-12Ki lira dis 
1V-**orepm - 
Vile db 


lO.SVltLSfi** LZtera pm 
4204.-4211 3.70-3.40y pm 

30.W-30.12 pm 

3J»V1KP* 2V1 : *c pm 

Belgian rota la for convertible francs. Financial franc 81.25-81. 35, 
SixrRionth forward dotlar 0.S-O.55C pm, 12-jnondi 0.80-0- 65c pm. 


U1 O.GN)Spffl 

— O.05-OJ5di* - 

4.77 5V* 7 . pm 
—747 120.150 dis -■ 
- 1.71 4V3*»pm 
-2.88 0.83-1. <#dl» - 
5.22 5V4 T *pm 
—10.14 30-4M dHl - 
-141 70-105 dis -■ 
-5 SI 37».-flVdis - 
1.Z3 5V*pm 
-0.82 3».-*>. dio - 
2JK 8V7\pm 
10.TI 9.75-856 pm 
4.89 40-30 pm - 
7^9 5V5J.pn» 


127 

-too 

435 

-7-37 

1.11 

-3.12 

4.78 

■7.?S 

-1.83 

8.91 

1.65 

-158 

2J4 

IS 

4.8S 

M3 


THE DOLLAR SPOT AND FORWARD 


Jan 11 


Day's 

spread 


Class 


Oh month 


•A Threw 

pj. months 


PJL 


UKt 1 .8850-1 .9050 
Ireland) 1.5480-1^675 
Canada 1,1853-1.1887 
Nsihtnd. 2.4890-2^000 
Belgium 38.8V3SJ4 
Danmark 7.4040.7.4360 
YJ. Gw. 2J680-2J2855 
Portugal 6B.7O-66.0S 
Spain 97^0-98.20 
Italy .1,214-1^184 
Norway 5^310-5^400 
Franca 5.7575-5.7965 
Swedes S.S720-5.6875 
Japan 222-25-223 SO 
Austria 15.89-15^8 . 
Sw.tr. 1S380-1^0 


1 .8856-1. 8875 
1^480-1.5520 

1.1892-1.1837 

2,4960-2^000 

3852-38*4 

7.4270-7. 4Z8S 

2J825-2J835 

65.9Q-6&D5 

96:10-98-20 


1JM 0.85-0.55 pro 1.27 

5.03 1 .80-1^5 pm 4X2 

-2.07 D.50-0.54di» -1.75 
2.88 1S7-1.77 pm 2£1 
—10.08 80-100 dr* -923 


O35-025epm 
0.70-0. 60c pm 
0.19-0 -22c dis 
0,55-OJBc pm 

SS^^O-Ofidis oil2 “®-« 


0.65*0.61 pf pm 
S-IDOc dis 
25- 35c da 


1J18V1.218 1 * 7\-8V»irod»S 
5.8330-53380 par-O^Ooradis 


5.7935-5.7985 1.10-1J2Se die 

5^910-5^940 0.55-0 SSor* pm 

223.20-223.30 133-1.43y pm 

15.97-15.98 5^-4gro pm 

1.8530.1 .8540 0.94J)J84c pm 
♦ UK and Ireland are quoted In U S. currency. Feiward premiumJ awi 
discounts apply to the U.S. dollar and not to the individual currency. 


3J4 1.99-1-94 Ton 3.04 
—11.38 65-220 dia -8.65 
-3.67 70-85 dis ' -J.M 
-8.14 25-27 dra -8SS 
—0.41 0.40 pm-ptr 0.14 
-2.44 4.00-4 S0*s -TL«7 
- 0.85 1.15-0.95 pm 0.75 
7.95 4.05-3.90 pm . 7.12 . 
3.47 14VHHPW 128 
5.76 2.45-2J5 pm 5.18 


CURRENCY MOVEMENTS 

I Bank of i Morgan 
Jan. 11 1 England Guaranty 

■ Indax jChangso% 

Starling....: \ 91.0 j — SS-0 

UA. dollar. ' 10B.2 J +1.8 

Canadian dollar.... • 88.7 , —16.4 

Austrian schilling.: 117-1 : +94- 8 

Belgian franc IDS’! I * In k 

Danish kronor. 86.9 

Doutsahe mark. 122.1 > +4J-7 

Swiss franc • 151JI . +10L6 

Guilder 114.6 I +2D.0 

French franc 80.6 ; —14.6 

Ura 35.5 i —57.5 

Yen.. 143.6 r +37. 8 

Based os trade vnightad changes Iran 
Washtestca agreement December, 1971. 
Bank of England lodes (base average 
1975-100). 


OTHER CURRENCIES 


CURRENCY RATES 

iBank! Special ;Eo»ppan 
Jan. 8 rate Dn*VW . 

■% ■- Rlgtits ■ ■ 1 ■ IWt ■ 


Sterling.— .: — 

UAS : iff 1 

C anadian 9..- 14.74 
Austria Sch.j 6 s * 
Belgian F— 14 
Danish Kr— 11 
D mark..— 1 71 a 

Guilder ; 9 

French Fr.... 9ig 

Lire 19 

Yen 5ll 

Norwgn. Kr.. 9 
Spanish Ptss 8 
Swedish Kr. 1 1 1 
Swiss Fr— ' . 6 
Greek Dr'chr 20ti 


0.606404 
LI 6174 
1.37840 
18.3938 
44.7444 
8.57190 
2.62811 
2^8112 • 
6.68830 
1405.71 ■ 
257.616 
6.77004 
115J.53 
6.45347 
2.18482 


OJ564555 • 

Loans 

1J28351 

17.1331 

42-JS449 

7J983D3 

2.44805 

2.E8119 

6.204M 

3308:43 

239.764 

6.29755 

105.529 l 

6.00781 

1.97684 

62.6865 


EMS EUROPEAN CURRENCY UNIT RATES 


Jan. 11 


ECU 

cantrst 


Currency 
amounts 
against ECU 
January 11 


% change 


A.-: 

Note Bates 


central 

rale 


% change 
adjusted for 
dtus/gance 


Divergence 
limit % 



Neglt SLA. 

10a Boulevard Rote. LuranPoug 

NAV tor. 27 fuSJU9 — | — J — 

N.ELL. liihuwHnmi Ltd. 

P.0. Bar 119, SL Peter Port, Guernsey, CJ. 

md 




Belgian Frere .. 
Danreh Krone . . 
German D-Mark 
French Franc . . 
Dutch Guilder ... 

Irish Punt 

Italian Lira .. 


40.7572 

7.91117 

2.40389 

6.17443 

2.66382 

0.684452 

1300.67 


41.6056 

7.97837 

2.44432 

6. 19866 

2.67860 

0.691770 

1307.06 


-1-2.08 

-0.82 

+1.43 

+039 

+0.55 

+1.07 

-t-OJIS 


+ 1.21 

-0.05 

+0.56 

-0.48 

-032 

+0.20 

+0.42 


±13368 

-1.6 412 

±1.1077 

±13733 

±1.5063 

± 1.6888 

±4.1229 


Changes are for ECU. therefore positive change denotes a 
weak currency. Adjustment calculated by Financial Times. 
Sterling /ECU rate lor January 11 0.5671C5 


Argentina PesoJ 18,039- 18.059t|. 9.500-9, 550t I Austria. 

Australia Dollar„'1.6860 1. 6880 0.8925^.8930, Belgium— 

Brazil Cruzeiro.~J546.17-246.17 , 129.32-129.97 ■ Denmark. — 

Finland Markka.. 8.2643383 , 4.58504.3870 ; Franoe 

Greek Drachma.? 108.670-111.867 68.1038.30 ( Bem.5ny- 

Hong Kong Dollar 10.88 U-10.U1* ' 5.7575-5.7625,; Italy 

Iran Rial _.~—J 18130* 78.70* Jxpan..~ 

Kuwait Dinar fKDX 0336-0341 (03824-03826 ■ Netheriand* 

Luxembourg Fr... I 7330-73.30 38.82-38.84 1 Norway 

Malaysia Dollar.. . 43376-4.2475 [2.2420-23440 1 Portugal - 

New Zealand Dlr.23070-2.3110 , 13310-13220 Spain 

Saudi Arab. Rlyal 6.48-6.54 !5j4200-3.4220 Swedeti-.. .~~ — 

Singapore Dollar. 3.87-5.88 334703.0490 Switzerland 

StluAfrtcan Rand 13169-1.8189 - 0.9650-0.9640 United States^. ; 
UJLE. Dirham ...j 6.98-7.02 3.6720-3.6740 Yugoslavia. 


5035-3036 
81i>-83 . 

14.02- 14.14 
1030-1130 

'439 >1-43511 
23453380 ’ 
422-427 
4.70l2-4.74Ii 

11 . 02 - 11.12 
1 24 13 5 .. 
184 a -e-193l4 
10.57-10.67 
5.4814-3.92 !* 
1.881; -1.90 if 

8893 


ss* ^ SfSSTRSr,™*-,. 



MD-Stemcl ft Ca. .. 

8 IcFdm St, SL Peter Port figem CI- 
GuenueyTM. D92A 2D6flHL5l 16 

HB Sunod l e ve st me n t MgmL IntnL 

P.a BokU Jrray. ^ 0©4 76029 

UBMC 9 

CSFFd. (AccJ 

Si«5bqwCFte Bek) .1 _ 

ITF Fd (Acc.) lUSSlZM 12j 

I.C. Trast Mwigtii Ltd. 

ID, 5L Ce«vgra5L, Daadai, loM 062425015 



OBI 26741 




Cortexa lntemathaal 
10 a Boulevard ftyaf, Lmentourg. 

CartealdsL 1 US$90.93 {-0*3 — • 

CralvnoHit Ffaod fait Mngn. (Jemy) 
P.a Bar 195. Sl HeBer, Jersey. 0534Z7561 

6»FuadtJ«J^.W« ... . 883 — I 0525 


IGF Manngim—t Sendees Inc, 

da RegWnn, P JO. Bat 1044, Ceyrren 

Intart. Gold FiszL^llOTMJ 8t70| _ 


DWS Deutsche Ges. F. Wertpoplenp 
^tubugaeg 113, 6000 Frankfurt 
Vnesta pKSM 3U5K(L0G( — 

Delta Gmg 

PJL Box 3012, 

ML lev. Joe 4-— . |UgM6 
Ltedon Agate 0«23 8000 

Deotscher Imresfanent-Tnst 

Postfadi 2685 Blebatew 6-10 6000 Frankflet 

&^ss=m M=d = 

Orejta biteROidtaeataf Inv. Fd. 

P3. Bar N3712, Henan, Bafaeuas. 

NAV Jen 5 JUS8U9 30 34 — ( — 

Duncan Lewie Imr. IM. Ltd. 

VkSoy Hre, St Peter Port, Guvnuy. 0481 28094 

^ 

Emma & Dadfcy TsL MgL Asy. Ltd. 
P3. Bax 7% SL Hdler, Jersey. 0534739S3 

EBJLC.T. 0320 1401^4 

The Ehtfsb AwncWon 
4 Fore StaeeL EC2. 

.IncaeaFd.* 

.Stertkifl* 

■lHF. I 

lire jm 

Eranbond HeMings H.V. 

Pfetermal 15, W Benate d . CuraoD. 


ILV. Ii 

P.a Bos 526k DriL HoHend 
EsnenkMOftertalimAC — !-HLU( 254 

IntmnttaBl Band That 

2, Bateened Royal, l owte m' 

NAV Jan. II (USUIS 10531-0031 — 

laternatfend Padflc Imr. MgmL Ud. 
PH Bn RZ37, 3b, PHt St, Sjrtwt, AuSL 
_..l _ JawHn Equity TsL _>JABl61 3jLT ! 050 

investment AdvHors, fate. 

First IntmaOotol Phca. H o ta n a Taos. 

hvkte lavestment 

1 Charing Cran, SL HeMer 

WtSMzfA „ 

Nea daiig Jta. M. 

Mhe Fleming ft Co. Ltd. 

46tt Floor, OnareM Centre, Hong 

±f: 


PQ Bor 77. SL Peter Pori, Guam. 
Ind.terencyFwd-; 

DoltffFxd. InL Fandj 
Ster. Esrsnpt Gflt Fd-l£l42 

ProvMmoe Cegftal Ufa Ass. (C.L) 

POta 121, St Peter port, Guerntey 048126726/9 

rrm . oodo r Q — 

re 

Oaest Fund Men. (Jersey) Ltd. 

P.O Bra 194, SL Halter. Jersey. 053*27441. 

‘ [fc F * UA - r 

:lntL f . .... 

i at Jnuey & Nest dsaflag January 13L 

toHCT/HBMild Ca ueiwiU e s 

314% Gresham Street, EX2V7LH. 014004177 

BBC tnvestMteot Mnjprs United 
PO Bar 2*a SL Wer PUr*, ftanoey. O4BLS0ZL 
Inti. Income Fd. 

IntL 


FSdlieeRdDK.17 

Coority, IqS. Dec. , 
padflc Ld Dec. 17 J 

M. G. Dmd ft Ca. (Janes) Ltd. 

P.a Bar 426, SL Hdler, Jersey, C.L 

OTflc I - USOUd __J - 

Ba'sr&Eyr&fe&t 1 * 


t Now ona rate. * SalHag rata. 


H = EXCHANGE CROSS RATES 


— - Unloo-fan 


Echaft n*H 


Postteh 16767, D 6000 Fteddurt 16. 

m 

Urirentt. 

Vanhnigh Fund MagmL IntL Ltd. 
28J4HM St, SL Haller, Jereqf 0534362B1 

VMnpi Orrosy Fm072 3073 J 9J3 

van Cuban ft Awectete* Ltd. - 
42, Bmx Street, London, WC2 01-3536845 

tanAnor. OV FdJ US$633 J, 

S. G. Wartnrg ft Co. Ltd. 

3a Gredra Street, EC2. OUO045e 

Warburg invest Magt J nj. Ud. 
7UhreryPteoe,SLHeanr t Je.CI QB* 37217 

tefKjsidr ““ ' “ 


Jan. 11 

.Poundsterling 

U2. Dollar 

D tutsch om’ k Japan ’*« Yen 




jCanadiaDoHarBAigianVran 

Pound Sterling 

U.8. Dollar 

l. 

; 0.530 

1.687 

1. 

4.308 

2^83 

421.3 

225.3 

10.93 

5.794 

■ ill 


: 9300. 
1219. 

U43 
i.ia» ] 

-73JZ5 

38.83 

Deutschemark 
Japanese Yen 1,000 

1 0.232 

1 2.374 

0.43B 

4.470 

1. 

10.23 

97.79 

1000. 

2^37 

25.95 

0.812 j 

8.303 | 

I. 095 

II. 19 

533.6 

5439. 

■ 0.521 1 

5.325 | 

X7JB1 

113.9 


1 0.915 ; 

1 0.286 1 

1.726 

0.530 

3S 41 
IJ32 

385.4 .. 

120.4 - 

IP. 

3.125 . 

5.200 . ! 

1. . .! 

4.314 
1.548 . 

.2104. 

- -657.5 

.2.052 - j. . 

0.641 . { 

67.02 

.aa.94 s 


0.212 

0.435 

0.400 

0.820 

0.914 

1^75 

89.34 

183.2 

2.318 

4.753 

0.742 L 

1.521 ; 

. 2.050 

487.7 

1000. 

0.476 ' 

.’ OJ75 . . j 

15.54 

51.85 

Canadian Dollar 
Belgian Franc 100 

0.446 

1.565 

0.841 

2.575 

1 1.920 

• 5.881 

mmu 

4.873 

14.9B 

1.559 ' 

4.775 

. 2.102 
6.437 

1025. 

3139. 

1 - i ‘ 

3.062 

32.66 

100. 


FT LONDON INTERBANK FIXING ( 11.00 a.m. JANUARY 11 ) 


3 months U.S. dollars 


bid IS 5* j offer 13 5.4 


6 months U.S. dollars 


bid 14 9? 16 offer 1411.-16 


Tho fixing rates are the arithmetic means, rounded to the nearest orre-ebcfserrttb 
of As- bid and offered rates for S10m quoted by the market tn five rtrfaronc* bonks 
rt 11 am each working day. The banks are National Westminster Bank. Bartfc of 
Tokyo, Deutsche Bank. Banqus Nationals de Paris and Morgan Guaranty Trust. 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 



Jan. 11 


Sterling 


U.S. Dollar 


Canadian 

Dollar 


.Tran. Joe. 8 — Tool MA-OMl 

Mnh| Investment Sendees Ltd, 

oth Fleer. Hustaen House, Hong Kero 



Ltd. 

PJL Ba. 154% Hfltfta Bcrante. 
RAMlMC0Jn4^4t&a 

JBcbmeod Ufa Ass. Ltd. 

4 HOT Street. I 

IheSBwrThi 


(80929)2.7979 

aai — I - 





Shortterm _| 14»«-19 ■ 12 1 3 12i t 15-14 

7 daye* notice . | 12 s b 12T 6 i 13.34 

Month 15tf.l9l« , 131 3 -13Ss ; 143»-15 Ib 

Three months — | 19^-15* i 137 B 14t s • 15U 15l s 

Six months J 15ss 15*« ; 14J..15 I 16-16te 

One Year 1 19t» 16-w 1 14Tg.l5ia ' 16 16te 


lOli-lOJ* 

10 a *- 10 >i - 
10*-10* 
10A-10i* 
lO^i-lOf 

to; 


r: Swiss Franc 

L7TiT«njT7M,l 

MM 


Belgian Franc 
Convertible 

Japanese Yea 

3is-4 

3V4U 

8is-ai 4 

8SS-8S* 

71b-8 

• 978-9^* 
10-101* 
10V10S* • 

iSiist 

104-10^ 


m 

13-171* 

151S-Z2U 

20U-231* 

2188-223* 

2l7s-23i«. 

- 1BTs-20Z3 

5JJ* ■ 
588-612 
- 61*-6U 

ill 


A'JflBSJear ■ 


B otfas c ldtU Asset Khnepminrt (Cl.) 
PJLBoc5ftSLJ«aaCt,Geenaey. &W12&331 



ECU linked dap os, re ; on. month laVT* pST cam \ ^ £S “Jffi 

Asian S (closing rates in Singapore) : one month 13J-13S par cent; three momhs 13V13L osr cent* vii °r2i. y 147 »- 14U S» pw «"t . ■ 

Sr,, ! . L ” nB -“ rrn E " r ' d " l,ir p„ - four , P s . r , C r4'. 1 5S ^ 

4 °"" — 01 *-»■= “• —* «' ««■■■ *».. ,3.40-, 3^0 W *, 


Leteoe Aontc RobL Fte^fftba. Tfct DUO 2400 



^ ^ »Fd._tlff7.7 


NOTES 

Rta av h pence untera otherebe Indkated. 
Vleta % Wem kt last cotarai) attew for at buyteg 
ote en se r . a Offered erics Mode aO nperas. 

b Tod^rii prtca. c Yield baud an offer price. 

d Estimated. f ToStfs epetdog pries, 
h Obtrtxtfiwt fie* oT UK tessTi p Periodic 
premkjoi Irawenee ptere s Single prembm 
mooKe. a Ottoed price loduries all eraeras 

except agent* conmdBtoi y Offered price lneadr* 

all openMsff bought tteoediawagenLZ Preriora 

&J 3 & 3 & 

$$ Daly walttte to 1 ' 


= MONEY MARKETS 


GOLD 


London rates firm Sharp fall 


METALS EXPLORATION LIMITED 

Important Notice to Shareholders 
of North Kalgurli Mines Limited 

CASH OFFER 
DEADLINE 

Metals Exploration's Cash Offer of SA1.50 for each 30c share 
in North Kalgurli, up to 2 maximum of 15 per cent of the 
issued capital, closes on 22nd January. 

Your completed Acceptances together with relevant Share 
Certificates should be received by that date at the offices of 
Metals Exploration Limited, Level 29, 80 - Collins Street, 

Melbourne, Australia. 

For the convenience of U.K. Shareholders Acceptances and 
Certificates may be lodged by 18 th January 1982 with: 


. BARCLAYS BANK LIMITED 
New Issues Department 
P.O. Box 123 
2 London Wail Buildings 
London Wall 
London EC2P 2BU 

Further yellow Acceptance Forms are available from Barclays. 
Lodgement queries: Mr. R. A. Smale, Barclays. 01-623 *311 
Ext 3170. 


i" 



yy ; p£ 

Donatian? and inframation; 

Vfalor The Earl of Ancaster, KCVO. TO, 
Midland Bank Ltd.. Department FT. 

60 W8st Smlthfteld, London EC1 A BOX 

Give to those who gave - please . 




WE, THE 
LIMBLESS, 
LOOK TO YOU 
FOR HELP 

We come from both world 
wars. We come trom- Korea. 

Kenya. Malaya. Aden, Cyprus 

... and from Ulster. 

Now. disabled, we must look 
to you for help. Please help 
by helping our Association. 

BLESMA looks after ih® 
limbless from all the Services. 

It helps to overcome the 
shock of losing arms, or legs 

or an eye. And. for the 
severely handicapped, It 
provides Residential Homes 
where they can 1 ’iyb in peace 
and dignity. 

Help the disabled by helping 
BLESMA. Wo promise you that not 
one penny of yourdonation will 
be wasted. 


London clearing bank base 
lending rates UJ per cent 
(since December 4) 
Firmer U.S, interest rates 
influenced London money market 
rates yesterday. with the 
various interbank periods rising 
by j to i per cent as Eurodollar 
levels increased by similar 
amounts. 

Day-to-day credit was in very 
short supply in London, although 
the Bank of England amended 
its forecast down from £55 Qm in 
the morning to 450m at noon. 
The main factors were: bills 
maturing in official bands and a 
net market take-up of Treasury 
bills —£315m: Exchequer trans- 
actions -£170m; and bank 
balances below target -£150m; 
partly offset by a fall in the note 
circulation +80m. 

Assistance provided by the 
Bank of England totalled £534m, 
given in groups of £429rn in 
the morning and £105m in the 
aftpmonn. Before lunch the 
authorities bought hank 

hills in band 1 (up to 14 days 
maturin’) at J4i ner cent: £224m 
bank hills in band 2 (15*33 davs 
maturity) at 141 per cent: £10m ' 
Treasury bills. in band 4 (64-91 
days maturity) at 144 per cent: 
£3m local authority bills in band 
4 at 144 per cent: and £153m 
bank bills in band 4 at 14^-14} 
per cent. 


In the afternoon the Bank of 
England completed the help by 
purchasing £llm local authority 
bills in band 1 at 14| per cent: 
and £7Sm bank bills in band 2 
at 14g per cent. 

In the interbank market over- 
night loans opened, at 143-15 per 
cent - and fell to 14-14$ per cent 
following the morning help and 
revised forecast from the Bank 
of England. Shortly before the 
close rates fell to a low of 13-13* 
per cent, but- then rose shar ply 
to close within a range of 16 to 
20 per cent. 

Seven-day funds rose to L4f-I5j 
per cent from 14{-145 per cent, 
and three-month to 15ft-15$ per 
cent from 15^-15$ per cent. 

In Frankfurt call money is 
expected to firm slightly today on 
the expiry of a securities repur- 
chase agreement ' with the 
Bundesbank worth DM3.4bn. Two 
agreements still running con- 
tinue to give liquidity assistance 
of over DM 12bn. however, and 
conditions should remain fairly 
comfortable, with, call money 
slightly below the current special 
Lombard rate of 10.5 per cent. 
Call funds fell below 10 per cent 
on Friday, rising to around 10.10 

LONDON MONEY RATES 


Gold fell to its lowest level 
since November 1979 in the Lon- 
don bullion "market yesterday, 
closing at $388i-39*. a fail of Sll* 
from Friday’s dose in London. 
Trading was very busy with a low 
point of S3S6 touched just before 
the entry of New York into the 
market. The metal then showed 
a modest recovery but still 
finished well below the .day’s best 
level of S395. 


In Paris the 12} kilo bar was 
fixed at FFr 73,500 per kilo 
(S3 96 .23 per ounce) in the after- 
noon compared with FFr 74,000 
(S399.52) in the morning and 
FFr 75,000 ($406.40) on Friday 
afternoon. 

■ In Frankfurt the 12* kilo bar 
was fixed at DM 28,765 per kilo 
(S394.02 per ounce) against 
D3f 29,080 ($400.27) previously 
and closed at 5388-389 from 8400- 
8401.' 

In Luxembourg the dollar per 
ounce equivalent of the 12 $ kilo 
bar was fixed at $392.50. 


Jan. 11 


Jan. 8 


Gold Bullion (fin* ounca) 

~~|S38B1*-SaOl2 (£200-206 J 2 ) ’ 1400-401 ' 

Moreina fcYi’w of 1 *" 39 * 3 * <£907-807!*) 83975*^8834 

Morning fixing _|S392. _ .. .(*206,131) >8387 75 ^ 

Afternoon fixing :&388.2 5 (£ 204306 ) 8400 j a ' 


(£208 l s -200) 

■68*07-2071*} 

(B20ZBS4) 

(£206.030) 


Krugerrand- 

]« Krugarremd... 
•f* Krugerrand... 

1/18 Krugerrand 
Maple|«af„ 

N*w Sovereigns. 
King Sovereigns. 

victoria Govs 

French 20,*_ 

M peso# Mexico 
J™ ®° r - Austria. 
330 Eagles 


Gold Coin* 

] {*01-402 .-(£*18-2121*) 

92O6li^307I* --- 

I 8105.106 
1 *43-44 
' 5402-403 
, S95lg-06 
: 811311.1 Ml*.. 

811312-lMlf 


! 806-106 
- 8483-486 - 
'-3379-382 
! 3503-808:. 


1X1094-10934) 
(£334-66) 
(£2*l 4 -234) . 
(£ 2124 - 21 $} 
l£ 604-503,) 
(£60-604)- 
(£60-6012, 
(ESOS 4 -S 61 ' 
(£2554-257) - 
(£2004-202)- 
££268-2684) . 


K Jff 4-*l34 ‘(£2154-Slfi4l 
92124-3134 . £fillOB*-1114] 
51084-1094 (8584-57) 
*444-464 +£aa-a34>.- 

S4151j-4144 (£2154-2 164) 
S984-984 - f£51 4-5X41 7 
*1154-1164 (£60-604)..:. 

Sl 154-1 164 (£60^04; 
:*97.107 ' (£504-654) ' 

.2495-499. .,(£*584-2604) 
-7389-392 (£203 2044) 

; 1510 -51 5. .. (£265-268i») 


UtLT 'stetT % 7 ' ♦u The ^2 nt - =? eciaI Lombard debt ’ 
alln^ri th *- market. DM 600m - 4m -’ Friday - f 

allowed banks to reduce thoir DM lJ.hn on Wednesday. 


BRITISH LIMBLESS 
EX-SERVICEMEN’S ASSOCIATION 



Spn»iM«i 

teWbJnate 



MONEY RATES 

NEW YORK 

Prune rata 15\ 

c ed. funds ISVir. 

Treasury bills (13-week) 11,72 

Treasury bills f26-w«ak) 12.68 

GERMANY 

Spsclal Lombard 10.60 

Overnight rats 10.10 

One month 10.573 

Three mgntfis 10.475 

Six months 10.40 

FRANCE 

Intervention rats 14.75 

Overnight rets 15.375 

One month 15.125 

Three months 15.135 

SI* months 15.125 

JAPAN 

Discount rats 5.50 

Call (unconditional) 6.4375 

Bill discount (three-month) _ 6Ji3125 


Jan. Zl 

1982 


. — tiling 
Certificate 
{of deposit 


Overnight J — 

a days notioeJ — 

7 days or. — 

7 days notice™ 1 — 

One month 1B4-16& 

Two months. .. 15s* 13 A 
Three months. 154 1&4 

Six months 154 15* 

Nine months..., 134-1BA 
One year ...... .. LB4 15£ 

Two years 


Interbank 

• 

deposiu 

negotiable 

bond* 

hi nance 

uSSSs 

13-20 

MVlfils 

1B1b-J54 

164-15* 

16 ^-iSfig 

13*.1B8b 

144.15 

143«-Z47a 

147* 

15 

ISsb 

158b 

164 

154 

16 4. 16 
164-15 

15 4-155* 
151b-147 8 
154-154 
134-154 

ji 

■ 

ilj 


i__ .JSooKt 

teomtremH Market 


Depoetts Deposits 


J44-i54;lS4-144, 


ffreaMiry 
1 Bmaft-J 


Ulglhte j ~ Flat 
■auk . 1 Trad 
:ftme¥4- Aids 


184-184'l44™144i ' - - » - _. 
IBfis , 144 .14H-14V 144- 


134 I 144 ;i4*. 14 *: _ 


1 -'-18: 
-151 
-151 


•5-:; 


eretHwiitiag - elite iniOIIM riQUIHK l | U|n « l Hk _P 

rate* nominally three yaws 164 per cent; fp ur vaers Long-n 

are buying rates for prime paper. Buy mg rots/^ rSr JTZLEVwFEL 


par cent. 


- . ^ WPW - 8uy,nB r8,M r " 

months M' u -lft PW Mnt. AwSteSiSJSSy^JJ 1 ^ ^ WfiMtV ti) 

HS*TiS , 5ir B 2n?" month * 14Hp,r etnt: « ««• S-ffimS 

Clearing BanpD^elf^*?*^ eSfflnSoJS A “ bcl »*‘9nl IPi 'pet.csirt.tro^t^ ^vlwitaiy.4' -H 

«nt. Treasuty Bdl. : Average wnder 















































’Ja$& i7*-i^i982 


f*.>*'->>v i "v .. 

•V — ^ • ■ - - • - 


INTERNATIONAL COMPANIES and FIN ANCL 



l ili itir 


a ra-i 
, ,- .■ t-i *-n 


<■ i 

■ -«•» •* ,,K 






* 1 * j 13 


WiR 


BY REIBt 


TWSST 


MEM Grahdplans stock swap 


“.BY OUR BNANC1A2C Si^ff . *• + 

• :GM GRAND HOTELS piaas to ohfigedtq -devote at least 75.per 
exchange early one third of its* , dent; atodL -at most, 90 per cent 
common stock for a new issue ‘ of its net profits after , payment. 
p"f : jeddeniabie- preferred stock.- -of any dividend for the redemp* 
For each share jpf common', ; up .* tion of the preferred. . . 
jto a maxuxuua of 10m, one share j . obligatiocL . beginning 

Will be offered. MGM Grand ending August 31, was subject - 
°?^ rator ‘ t 2? e ma ^5 r hotel/ to credit for any shares of pre- 
casinos, has 323m shares in t&reA. purchased .by ifGM- 
* s ? ae ' - - Grand ih-tie market ^or otiier- 

tendered, exchange wiH be . Mr Erk Kerkorian, who owns L 
prt>ram, tne poaro said. about SO per cent of MGM' 
The. 'preferred «tock‘ wfll -be * Grand's stock. has- informed the 
entitled to cadi diYidehds ; 4quil : . company tie inteddS to* parfici- 
to 44 nents a foafe* -equal to the spate in -the proposed exchange 
present ; dividend paid bhtfke .apff.whr tedder 'at-- least 5m 
common stock, and win oe common to2L^es; , ‘ 
redeemable on •an - anunal baas ■ ■'. “TbedlrtWhHS of MGM Grand 
at~ $20- a sha re, ; The common ’ cpmaiented ■that the r parti ci pa- 
stock stood at $7# last weefc ' v fom t^ .MrEerkorieh wmBd not 
-- MGM , G rand . sdbT.it :wovdd be ‘ jffec^ Ms- Jmsition of,oontool of 


MGM Grand’s octistabdraig com- 
mon, stuck. 

. The offer is subject to autho- 
risation by shareholders for the 
new preferred, and undisclosed 
additional - ; financial commit- 
ments.- ■ •■* 

Meanwhile, - a - denial . - was 
issued- by Mr Frank Rosenfelt, 
-chaarman of MGM FQm. which 
incorporates the film' side, of 
the former MGM group, of 
rtuftoters foaiTMr 'Kerkorian may 
be' plfmmng to sell ftis 50 : 'p£r 
cent stake in foe film company. 

“ Nothing . could - be further 
from the: trafoi” Mr Rosenfelt 
■told the annual meeting. 

Mr Kerkorian rendered "key 
ftnanriaT support in MGM- Film’s 
$380m purchase of United 
Artists last July and also for 
the company's current heavy 
film-production schedule. 


Swiss 
banks seek 
co-operation 
with SEC 

. By John Wick* . In Zurich 

SWISS BANKS are. to look 

- tfor- ways to prevent their 
implication in fasider deals 

« on the American stock mar- 
ket. According to the Swiss 

■ - Bankers’ Association, they are 
. prepared to co-operate with 

.the U.S. authorities to guard 
apajiwafr being “mis-used” to 
: contravene roles laid down 
■ by the Securities and Ex* 
change Commission (SEC). 

In Switzerland itself, there 

are no explicit laws forbid- 
ding insider transactions. 
While the hankers* associa- 
tion -f frhr ” there has hitherto 
been • “no real . need” for 
these, .it .says steps are now 
being . ■ taken which could 
empower stock' exchanges _ to 
create rules aimed at banning 
jj n«iflgr manouevres. 

The association says that 
Swiss banks acting as inter- 

■ mediaries for U.S. securities 

■ deals are keen not to be used 
as tools In insider operations. 
The question has “suddenly 
become rather topical” with 
foe recent SEC investigations 

- involving Swiss hanks. 

This is n reference to the 
New. York court case con- 
cerning the alleged rule of 
foe Lugano-based Banca della 
> Svizzera -Italian* in a deal in 
shares of takeover, ca ndid a t e 
St Joe Minerals, as well as 
the naming of -several ether 
Swiss banks ih connection 
with foe . controversy sur- 
- r6 trading the Santo Fe 
acquisition. 

The association says foe 
banks in question had . 'col- 
laborated in investigations to 
.foe wtw»t permitted by Swiss 

- law. They had, however, been 
put 'hi a “difficult legal 
position” by U.S. demands for 

- disclosure of client lists in 
specific stock market orders. 
Despite' this, the banks, were 
In favour of ifinfong. 1 “a 
sensible solution.** 

Itel wins 


agreement 


^‘iijtrERiNA SERVICE 0 n debt plan 


■ : exists^: of thfese' ol* bfoef 

witi-bfe ptoSfoed next on- Sunday Eebiuary'Tfir .- 

- . U.S. DOLLAR . - - ^ . 1... .' . , -1 C&maftJWL -- 

STRAIGHTS - - ^ / ItsusdL fUd CHfcr dtnr-vmak VWrf . 

ABMbMK^itair Wi m UJO W 2 * 

- M&TmrC* ^ «^- ; M3VTW1r-mp 

“"Br^CSfiiinT TOO rW.TOtV-'O 1 * -TSdSAi. 

Bfl- Coftno. j to.' 1 7:87 S*. 

Can, N»c K»H 14V -9! WO 94H — 0 *a .— 

CFMP Nb.se MgM. 100 ^ 

'dflU 100 .t40»*1«V.- - 

Citicorp O/S 1«, 86... ISO 0 Tall'S 

Cilia* ■SurvicB 17 88 ... 150 - 

Cans-Badutntt 17*, 88 SO 103 KBS +OH —0», 18.63 
CPC 1«r» - -- SO U» > -MJS4 +0*1 +DS TSJB 

. - E». Jff*. «8 -TW^ ffiWi Wig , 

, sb ,isv « —■.-.....t .w yZ 1 ^! v 2£« 


UnuwP BId OAr lAr*-**™ 

1 mo iio* 10Pa -£FS- o 1SU0; 


CFMP WV 96 
■ CtflC lev 

Citicorp O/S 18V 86... 


issues-.for.whichjai^ -adequate secon clary. market 
see' the' tcttnplete list of Eurobond prices' which 
' " * .. . dosing prices’ oh January 11 

. L SOFTS.' 8V 89 .EUA & - 77V 79 +0V 0 13.02 

U. Bfc. Wwy. ^30£UA 18 90V 32 0 -HV11.1S 

. Alaowm* Bfc. 10V 86PI 00 99V 99V -O 1 * -OVK>-«t 

-Amta*. Group -12V 86 H 40 102VKBV — OV 0 11-39 
Amro B*nk 12 36 FI J.' 7S 702 702*, O ’ O 113 8 
Aroro'BaofcTi86 FI 60 102V W»i -OV ^OV V13A 

Hslmikftn W iaS7 FL..’. 100 96V 97V "OV *0*, 10.99 

Praraon 10V 86 R SO 98 98V — OV -OV 10.78 

R«bobmlr12 96 Pi 80 102V 102V — OV +0V 1124 

Air Praiica 14V 86 F^r— 200" 92V 93V 0 +0V 16.72 

Bk. Amuica 14V 86 S=r. 2S0 98V A4V +OV -OV 18-91 

13V8S«=fc.40U. 92V 93V +0V +0V 16A0 

. SB 14V 88 FTr 300 89V 80V +OV +0V WL94 

U Rpdouta 14V 8S Iffr 125 91V 92V 0 0 17A6- 

. OlCB- 1*86 FFr 400 32 33 — OV -f OV IBM 


, SB ,18V »V — .s.^..... T .*» 
- GMAC O/s Bo, U3VA4.300 
... Soff O/s; 1Tb « » 
Nit. Bk. Canada 16V 88 « 

,.««L. W(wr.J4Vyi ■— TOO 
Now Bnmawidt 17 88 80 

Newfoundland. T7V 89 80 

Naw « Lab. By. 17V 89 76 

OMo Edison Fin. ,17V 88..., .76 
' OKS 15V 97.^-,^Tr f .r, - 5U 
- Ontaria Ryd. |6 91.<l|l) .- 200. 
» • Pac. 6ae-& -B^ -1SV 89 . 80 
Quabac Hydroi'T7V 91 ISO 
Qua bee PrbvincelSV 89 ■ 190 
Saakafohawajn - 16V. 96 100, 
Shaft Canada 16V Ol-' «< . 100 


,100V 101’. ,-OV -1 1II-W 

96V sr, -ov -avis^ 
w TO4V ir'-uvisto 
106V 108V 0 -0V1S.B8 

losv io3v +ov -OV uwa 

103V W*v -HIV +ov mw 
97V -^0% “HWf Win 


UMV106V 0 ;.-6V M.T5 , 
197V 98V -Wrf r-9V 15J2 . . 
100 ; TOOV -6V-1VW.15 . 
700V WV -0 V-3VN.47 . 
96V ^ 96?. . W - - 4 -‘ 16.17 


Statafofotao 15V U7 ,.l . 60^, . :«V 9W r? - ~ W.W . . 
Sweden 14V 88 _..„„ .. Wl ^ . 

-swarf. - :■ W. -J2S. ® - 

Tanneco 17 ...... 100 ^ - 

Tsxaa gastam J5V 88... .,76. 9ga - . 

* 'Tranacanadrf ; 17V 88 75 

V-Thmatanade 16 8SV. 10U 7JB% W, +0V -*OV W-W ’ 
Walt. Dhrpey lSV 86 — .W . IglVIgl r*LT& jg-1? 
MTmnlpaB- 17 « Ip— ' » 2« ' 

WMC Pin.' 19a BB . — «> .- *, 

. . World Bank 16 68 w.... » - -IV 15.77 

v World Bank Wj 8fe 130- U253X> "Jfc ”5 « S 
.- : World Bank *16V 86 VO TOTV -UBV WJB 

Averapa price ohanpaa...; On day — OV on weak .-1. 

- DEUTStHB MARX ’’ “ ; ' Chans*i«ik ; » *’ 

.srairGHto- : •. 

• j Aden Dav. Bank 10 TOO . W/ MB, «V *%***£ ■ 

Asian Dav. Bank 10V 8S MO • Wf . -Oh 

'• BeKjetoctrie 11 91 ...... 100 Wlh ig : 

- CECA 10 91 UB WIVUEV-OV+OV S-81. . . 

*Sm. M-EmSTibw WV U»V HPi rUV *M - 

- St-S-Sgi** ^ lis is - 

1 FTr 10V S3 ' ...J— 100 TOO®, WTV —,0V +0V .938 

m av to - 700. szv bsv r»v -ov 9.71 

* SB rT^...-. 200 * NBVWV ■*«. -BMW ■' 

RnlandT Rap. of 10V 86 100 “g* ^ «2g 1 

Intar- American 90 91 ™ 

. : ■Inar-Amarican ,iflV |i no. Jg 1 ®}. 0 - 
. Japan Air Lines 8V 87 W , . .**J . -■ 

-Midfond^t. Pn. 8V J*. “o'' "MS 

swad. Be. end. MV 3} . 25 ' 'J& *&. tS? _S . . 


. Solvay et C. 14V 86 H=r 200 
•- Sima.X Cr. 14V 86 FFr 250 ' 
. :U., Max. -Sts. M65 FFr 1» 

Acorn 14 85 £ - - 1 2D 

BabaOcial 14V to £ 20 

- • BNP 19V 81 £ » 

CECA. 13V 88 £ 20 

_ _Ciiicorp -O/S 13V 9U£ _50 . 
Fin. Ex. Crod. 73V 86 £ W 
Gan. Elec.. Co. .124 89 £. 80 ; 
.-•Snah-VlaKwr 14V 86 C . 29 
PrivBtbankvn 14V 88 £ 12 
• ‘7. BdtUeMM.WV'SO £' 12 
Royal Tru*«co'14 86 £... . .12 
— SwedrEx. Cr. 13V 96 £ 20 - 

■ : Akxa 9V 87-UntFr ..... ! . - BOO 
.Euratmn OV 8 S LuxFr ... 900 . 

- Euroflma' 10V 87 LuxFr - 900 

- SB SV flB.'LtosFr ? - «» 

•- Volvo 9V87 LuxFr — i BOO 


77V 79 -HIV 0 13.02 
90V 92 O —OV 11.15 
98V 99V -OV -OVTO-42 
1Q2V T03V — OV 0 TL39 
W2 : TO2V O 1 0 113 8 
102V WV -OV — OV H-24 
96V 97V -OV *0V 10.69 
SB 9BV-0V -OV 10.78 
W2V 102V -OV +0V 11^4 
92V 93V 0 +0V 16.72 

gov tov +ov -ov ifi.ei 

92V 93V +0V +0V 16A0 
89V 80V +DV +0V K L« 
91V 92V 0 0 17AS- 

92 93 —OV -f OV IBM 

9ZV 93V O 0 17JC1 
92V 93V +0V +0V 17.09 
9TV 9ZV +OV +OV T73S 
90V 91V O -0VT7A3 
83V 84V O - -OV 17.92 
84 .85 0 -OV7&99 

8BV S9V 0 — OV KL25 
88 . 99 -OV “OV -16-14 
89V 90V -OV -OV T7JJ6 
8SV 88V ■ Ol -OV 1S-B7 

93 94 O —OV 16-42 
90V 91V 0 -OV 16.77 

- SZV KV--OV -OV ■B-82 
92V 93V -OV — OV HL32 
to*, *TV +OV -OV16-S7 
84V 8SV -2V -9V »3J» 
85V 86V +0V +0V ! 13JB 
91V 9ZV+0V+1 NLS7 
86V 87V — OV +0V1298 
86V WV — OV -OV 13-10 


MO - T01V1 S.-fc -0VUJAZ 
100 TOTVIOR. tf— 6VN.6B 
WB ttlbNBKMMi'MW 8.81 ! 
top MOV MOV rOV r-uv M6 
MO. 1U1V101V ft -0V ?J» 

■too too v wv -ov +vi 

200' SZV 83V rOV -ov 9.71 


FLOATING rate . . •• 

NOTES Spread pErf. OSar <Xdta Cxpn.C.yU 

Bank of Montreal BV.to OV 99V K»V 18/6 14V 1A27 
Bank of Montreal 5V 81 OV 98V 100 29/4 T7JJ6 17.11 
Bank ol Tokyo 5V 91 ... OV 98 98V »/6 ' WV 73-49 

Bk. Nova Sqotfa BV 93 . OV. 9SV WO 29/4 17.06. 1741. 


BBl Int. S 88 ov 99V 99V 20/s 13V . 13^7 

BFCE 5V 88 «V 99V 100V 26/4 16^4 16^96 

Christiania Bk. 5V si... 40V 9BV 99V 5/2 15J* 15.74 

Co-Ban Eurofin 5V 91... OV 98V 99V W4 16.69 NUB 

Den Nonrice Cred. 5V 83 OV . 97V 9B 4/9 13 to 13^97 

Gonftnance 5V 92 ...... OV 99V 100V 30/6 15V 15^2 

Giro und Bank SV 91 — 40V .99 99V 23/3 . 14JJ6 1AT7 

.^ZB 5V 92 WV 9BV 96V S/3 13V *33? 

“indL'Banlc Japan 5V 8B OV - 96V 99V 9/5 13*1 1X50 
Uoyda 'Eurofin BV 93 ... |0V 99V TOO 29/4 T7.13 T7.T7 

CTCB Japan 5V 89 ...... W, 9BT. 9g»16/1 18^2 1BA8 

Midland Int. Ftt.S9T.-0V SOV MOV 30/4 T7JJ6 .T7.0B 
National Fin. BV » ... OV 97V 96V 25/3 77^1 17.OT 
Nat-^Ski Canada SV 88 - OV 99V MO. 31/3 T731 1736 
‘ iNat. Wan. 'Fin. SV SI— - §®V 99 99VK/1 1»V KX 

Nat WaM. Fin. 5V 9?L.. SOV 99V MOV 23/4 T7 17.02 

Nordic im. Fin. SV91- OV 90V 99V 6/S 1S\ 15.76 

. Offshore . Mining 5V 9T OV 88 SBV VO M 33"S 

Psmex 8 91 OVf 97V «BV 8/4 17 TT37 

PKbanksn 5 91 OV 9BV 99V T7 /6 W» 1480 


9P m 99V 16/1 T83Z IBM 
SOV MOV »/4 T7JJ6.T7.0B 
97V 96V 25/3 T7JM 17.69 


i-nor, VVIWU ran- m » ■ — J w — : a — 1 - w ~ 

Nat WaM. Fin. 5V 82... SOV 99V M0V23/4 T7 17-ffi 

•Nordic Int. Fin. 5V 91- OV 98V 90V 6/5 15V M.76 

. Offshore . Mining 5V 8T OV 89 9BV V& M 73J23 

Psmex 8 91 OVf 97V SBV 8/4 17 T7^ 

PKbanken 5 91 — - W* , 9BV 99V T7^| 

Sadwalnt.Fin.5V8R.; OV 19BVM0 2V3 17V 17 S 
• Scotland Int. 5V 92...... OV. 96V .99 W KM T4.11 


- Gee. Pacific 5V 91 ...... OV- 96V 88V2«£ «V 1R« 

■ Sedan Generals SV SI OV ' 99V 98V 22/1 MV 1 1 M-74 
Spars banker, B 87 — OV 96V 98V 21 « 

Standard- "Chart. 5V 84 OV «. 98V M/5 1331 MUB’ 
Sumitomo Rn. 5V 88... ,°V " toV TOO .1/2 19^1941 


SHKS* - ySSS- 

Aaroporr ,P«r.a ,6V 9U: .to vS •* 


Allan Obv. -Bank 6 to JO 
BFCE 6V «»: "•"«? .322 
Batqelectrid -Fin. 7V 81-180 
Bill Caherfe ^ 

Bergen. City- 8V 91 40 


wev ito -ov -ov 7*. 
M6V 86 - 4-OV +0V 7ri5 ■; ; 
102 102V -OV -OV 7.42 r 
MBV106V.SF0V -0V v 6;90 ■ 
100V MOV +OV 0 8.83 




CECA 6V 31, ——ir—Jl -22 

Dome Petroleum 5h 9V .MO 
Dome Petroleum TV to ., ..1» 
Franc.- Patrolsa 6V-91. — * 
Geoitar 7.91 


MO MOV +OV ‘0 6.72 ' 

MV 94V+OV 5 ,.*■»’ 

104V MS “OV rf R« ' 

8SV. 96V -OV +m* MO ■ 
M2V M3 * ‘FOV -6V 6-57 , 


sra:* .a is :s sa 


* i/S Sawn SV 91--- » 

- -Japan Air Lm».7V91 MO 
Nader, Gwume B 81... Vo 
OKB 7 S3 J®? 


KMVW4V +0V +0V 7to 
104V 1«. ,-OV rOV R56 

M6V Mg* +2* “i* 12 

TOO 100V -OV -OV 


OkB 7 93 . ...... Jfjtv KTpj ?FDV— 1 0V.7.® 

? JS? SSv=S=S?5? 

Saint' Etienne ~ 22 ' ^ 0 +K X67 


Saint Bienne Vi Jt ~ 
SwsdL Ex. Credit ,7V 


. _ .. . .. ''Chanaeou 

FlAfff®* - £5 toV + 0* +S. 732 

is ISIStSJivSS 

Inl^lMr. D«. tt si « 

1 V • . ; 'Change on ■ 

. - QTHBt/sTRAiWfTS . I»«»d ^ ""S* 

Can. Utitlties 17 96 CS » JWiJg o JLlR26 
- Fmforif Dev. - 175 «3 « 0 gig 

. GMAC (Cm.) -.18 87 C$ ■= 00 122^ ^ iS- 1 £ m 3 
>"Pancamdkut.1Ss 8B.CS ®'. 

Q«eb. Urban l&SB CS 30 fWDV »JV 0 0 MAI 

•’Roym ,17V W CS ..._ ■ 40 1M1VMFV 

• ! zTonfom Cpo. wva»es«. ® : Iff*- 2g*‘ + ®V,+2?S2i 

M. Bk. thimk. 9 91 EUA 29 82 63V O O’ TZVT 


sumitomo fin. ti «... 

Average price eftangea...- On day 0« week — OV 
coNverriBLE ' <Sw. Ciw! "•7 Q»a- _ ; 

- BONDS - dale pnes Bid Offer day Pram 

ApiK>mbtd SV SB 7/BI - 33? . 97V -IV -1J« 

Veils/ lnv. 8 «... A/S 12 S .12 100V W2V o . 22.12 
-S 6V * - 1/81 B29-. H0V112V +0V *3* 

Datum S«*. 5V 96 .:.;:.12/81 S1R3 -fto - 82 -1 -2J5 
. Fujitsu Fanuc 4V 96 -*.: WJl «70 

Furokkum Bac- 5V 9R_ 7/BI 300 125V 127V +OV 0 32. 
■ Ittrtfda O/S Ffo. 9V to B/OT RW 1K7V toV 
‘ Hhaehi prod. Cpn. V « 7«t « - “ '** 

' Inchcepa 8 86 Z/W *£ .1£L - S& ^ ^ 

Kwwafci'.SV 86 - 9PVJHV-0V 

. Marti- 6 96 7/81 931 103VM5V+CV ■ 297 

MmushittB.7Va5-.1V80 590 WW.-F; W 
MMoba -Camara 5 96 —Mg] -2S 32* 25. 22'2 

- -Mutate SV « — 7/61 2190 78V 80V +OV 2R» 

SSSv 96 ..S~ — 7/81 188 93V 94V-1V-2.71 
Ni^CS«nMX591.-M^l ** JL<£<7& fi 

Ricoh 6V 35 8/80 604 MTV TOSV +0V 5^® 

SSllec tric5 96--.10/8l ^ 78 MV o .13.94 

. SuroittMOo Met. 5V 4?* S 

Swfoa Bk. Cpn. 6V»... 9/80 M! 175 77 0 Tl^ 

•Ttaytat Wlrodrow 8V 90 1/81 4U4 tM M 
. - tSmco Int 8V 95 — 8W «. ^ ® 

Tricorp 8V 95 J® ^ J ^ 

Union Bk.Swftx.S SR- 2|®0T0JS W6 » . O. 6« 

:^5h«aAw'. a « BDUJrtlSWA. -WTVM2V rt . 

■ • " - l ' Mio Infoimatiuo aveHahla previooa _day's .pric*. 
i; . (-Only one market maker -aappC ea a.pnce . 

- - Stra^bt BmuterTboyiaW is tiw yiuhJ ® "J*?^** 

tnld'brioej the amount h * « S?*? 

units- micept for Yen Dowfo where ft fo m MIim*. 
Change on week^Chanaa over nnn ia week eartist 
1 - jFloeting ltttB NoucTJUiomlnafod In dtilirr; .amwa a mar- 
••. ' wisa imBcnted. Coupon s&Own le ptinfonsH. &d»=Date 
‘ r next coupon becomes tifoetiye. Spread-Margin above 
aix-rttofrth offered jmt (ttiuefr-moofti S-abovo mean 
' = ratej jor Ui. doOti*. Cxpa— The ewnwr coupon. 

- : C.yid— The current yield. .; : . • - J, 

' Convertible Bonds." Denominated in dolbra wrtasa othsr- 
Vrise foefloatad. Cbg. dtry-Change on day. Cnv.-dcte- 
Brst tieta for. conv eroion into -shirta. Unvjpnce- 
Kommai amount -of 'bond - per share _ axp rewed m 
• ceneucy of share at 'din version ratemwa at matte. 
Pram’-Pafcamage premium of the current effective price 
of acuoiriag shams via Me bond over the- most recent 
price of the- shares. ' 


' Q Tha-fintmSal TitmurLtd-, 198Z. Ra production At whale 
or in' pAt In any form "boe p etmine a without wnnen 
■ -consent. Dot* rftftfoiied'by DATASTKSAM tnt«rn*tidnaL 


International Harvester in * fc 

_■.■■■■ * U.S. credit 

new plan to raise cash unit stake 


.AY OUR RN/U4CIAJL STAFF 

j^EERNAHONAL Harvester, 
n umb er two in the . world . list 
©T'fann equipment naannfae- 
tnrers, has plans to streamtiiie 
its management' and administra- 
tive organisation in fiscal 1S82 
which are expected to save the 
company ,$2Q0m. The board of 
IH- also, said .that -it intended 
to raise more than $100m in cash 
through divestitures m 1982. 

: . EarHer, IH said it expects -to 
return to' profitability in the 
second or third quarter of 1982, 
but would incur “a very sub- 
stantial loss” in the first quarter 
ending January 31, . 

The company, which sells 35 
per cent iff its output overseas, 
plans to cut its worldwide work- 
force <ff salaried employees by 
25 per cent, to 20,000, by -the 
end of fiscal 1982 and ton con- 
tinue its general salary freeze, 
which began in- 1981,- throughout 
the current year. . 

Other plans to turn the com- 
pany around include: the Con- 
solidation of operations around 
its core .businesses 2nd its manu- 
facturing operation into fewer, 
but more highly productive, 


plants.- . .. . 

The board , also said gtfufcdd 
reduce its- physical veto toe; iff 
raw materials, work-in-process 
and. finished goods inventories 
by 12 per .rant and would dis- 
pose trf assets not needed in 
the bore businesses. 

At the end of last year. Har- 
vester, which incurred a-loss- of 
4397m in fiscal 1981, agreed 
'with its major bankers on a re- 


structuring f of ' ita tippling 
$4L2fcp debt load.- Negotiations 
.'bn "foe .debt burden 1 -had con- 
tinued throughout last year and 
were -crucial-, to the company's 
-hopes' of -stability,.. . .7 . 

■>• Xn the past'few years IH has 
been badly hit by the collapse 
of the market* for expensive 
capital ecpiipmtot ,'ihvestment 
by corporations' and by the high- 
rates of interest in the XT.S. 


Higher profit at Teledyne 


BY OUR FINANCIAL, STAFF 

TEU33 YNE, TH ^engineering 
and electronics group which is 
.a 1 “major -Shareholder in Inter- . 
national Harvester,' reports'* a 1 
Sharp rise in profits, for 1981.- . 

Net earnings have risen from 
$344m to $412m on sales- a tenth 
higher at. $3.23bn. At the per 
share level, earnings were 31 
per cent ahead at $19.96. 

The performance takes in' a 
slowdown in profit growth rates 
ih the final quarter, however. - 


Net earnings per share, rose by 
36 per .centr on average in the 
first thine quarterly periods, but 
by the ' final, three months 
growth' had -Blackened to 15 per 
cent. 

. . Teledyne plans to step up its 
shareholding, ih International' 
Harvester from just under 12 
- per cent to 15> per cent Eventu- 
ally it hopes to acquire up to a. 
quarter of the troubled truck 
' and farm machinery maker. 


By Rupert Cornwell m Hom* 

FIAT, holding company of the 
Italian -motor group* has solid 
its 50 per cent stake. rat Hat 
Credit Corporation .-(FCC) of 
the U.S. to Deutsche Bank, 
which 'with Fiat set up the com- 
pany- three years ago to help 
finance Fiat group sales in - the 
"market 

- The German partner wiH 
therefore be assuming 100 per 
cent control of a concern which 
has annual .business of $2Q0m, 
and which has been consistently 
profitable. No . details <ff 
tennis of the acqu&ftkm by 
Deutsche Bank were given. 

Fiat said that the sale of its 
interest in FCC had been made 
necessary, by possible conflicts 
with Federal Reserve -Boa rd 
policy over joint ventures 
between banks and ind ustrial 
groups. . 

The company, however, plans 
to continue to develop financing 
Kales with foe Fiat group in 
North America. Comfitional 
upon Federal approval, it 
intends to expand into other 
financi al services and leasing 
activities. 


The number two U.S. air freight concern is fightmg back. Carolyn Hyde reports 

Emery air cargo group sees red 


" By Our Financial Staff 

ITEL ~ CORPORATION, the 
former computer leasing 
company, has reached agree- 
ment in principal with its 
unsecured creditors on the 
major parts of the reorgani- 
sation plan It has worked out 
for its debts. 

The company has also 
received its fifth 60-day ex- 
tension of foe deadline for 
flung tlm plan with the bank- 
ruptcy court. 

. I'.lttef said it^md been told 
that the plan would be recom- 
mended to the institutional 
voting ' members of the 
unsecured creditors' com- 
mittee. 

Under foe plan foe 
creditors win pay a substan- 
tial amount of -cash -to its 
creditors and issue several - 
new classes of shares. Un- 
secured creditors- would also 
receive more than 75 per 
r*»nt of foe common shares of 
foe reorganised company. 

Itel filed for protection 
under foe UJS. bankruptcy 
laws 12 months ago after foil- 
ing to work out a restructur- 
.. lug programme for its $800m 
of bank and institutional 
debt. 

Its total debts were $l-3bn, 
the secTidng charges of 
. which were a major drain as 
Ilel fought for survival after 
the collapse of its computer 
leasing business as a result 
of technological changes 
introduced by International 
. Business Machines In 1979. 

, In 197iTit incurred a pet 
loss of $43&3m although in 
: 1980 this was cut to $62.1m, 
.the company since has been 
operating profitably as a 
lessor of equipment other 
than computers; and for the 
first sine months of last year 
i't was S10.8m .ip foe black 
compared with the $5Um 
loss in 1980. 

National Steel 
profit down ; 

By Our Financial Staff 

NATIONAL . STEEL, fifth 
largest of the U.S. steel- 
. makers, achieved a “modest 
profit”’ in the final quarter 
of fiscal 1981, a sharp setback 
from foe $15 -3m, or 82 cents 
a share, earned in foe com- 
parable period. 

Financial services and 
aluminium operations made 
modest contributions to 1981 
fourth-quarter earnings, off- 
setting losses from steel 
; operations. 

■ E ar piu g s in foe first nine 
months of 1981 were 5693m, 
or $3.70 a sbarc, on revenue . 
of $3J24lra and slock market 
analysts believe that earnings 
for the year reached foe $4-a- 
share range. 

-National had net income of 
$83 An, or $4.42 a share, in 
1986— a severely depressed 
.year for the .domestic steel 
industry — but the sale of Coal 
eserves accounted for 58L5m 
. of that totaL 

National Steel is generally 
■oriented towards foe motor 
and consumer-related indus- 
tries and was hoping to See 
some improvement, although 
these hopes were dashed by j 
the rapid setback in foe CB. ; 
economy as the year pro- 
gressed. " 


MR JOHN EMERY, .chairman of 
Emery Worldwide,.. the second 
largest U.S. adr cargo company, 
has taken to wearing red ties. 

The change as more than 
'superficial, signifying a derision 
by Mr Emery to halt foe erosion 
of foe market share held by foe 
company, which was founded 'by 
his tether and was previously 
known . as Emery Air Freight. 

In formulating Ms new stra-' 
tegy' : Mr- Emery brought in 
consultants who told him foe 
bine mad white' insignia of the 
old Emery signified large and 
rigid while red' meant change 
and drama. As a result Mr 
Emery has repainted his air- 
planes aiid is - wearing a 'new 
tie and is malting serious 
changes to a bqsibess founded 
in 1946 .With $250,000.. . 

Since its inception .foe com- 
pany lias doubled its revenue 
every five years and last year 
will have taken' about $500m. 

' In foe old days, , the business 
was . divided between Dayton, 
OMo, for large cargo — known 
In foe trade as “ugly freight” — 
and Tennessee for small pack- 


ages add envelopes. At . .that 
.time foe "business was depend- 
ent on passenger airMnes’ 
freighter services. 

Over foe years Emery's 
- supremacy has been challenged, 
with newcomer- Federal Express 
now the industry leader. Federal 
Express has only domestic busi- 
ness but its aggressive market- 
ing and good -service reputation 
together with its own fleet of 
aircraft have allowed it to- lift 
its cargo movements .from. 18 
packages on its first- flight in 
1973 to 110.000. 

Another major factor in foe 
business is Airborne Freight 
. which is roughly half the size 
of Emery but is the only other 
member of the big four, to have 
international- operations. , 

- United Parcel Service (UPS) 
— a Purolator subsidiary— runs 
an overland, two-day service 
generating annua] revenues of 
about $4ton, but it is about 
enter foe overnight air. freight 
market UBS has leased nine 
Boeing 727s from Branlff Inter- 
national and is expected to 
challenge Emery and ‘Federal 


in the market for .parcels under 
70 lb, foe only sector in which. 
Federal operates. 

• United Air lanes, the largest 

- domestic ■ carrier, has alto an- 
nounced plans' to operate a 
service for small parcels, and 
Burlington Northern, foe rail- 
way group, is starting an air- 
cargo service for foe under 
70 Rj market . 

Facing these e xisting and 
potential threats, Emery has 
•taken a long look .at .-its busi- 
ness. Mr Emery admits that his 
company was losing touch with 
foe market .and no longer had 
foe efficiency to maintain good 
customer relations. 

-Is- looking at its . business 
Emery broke operations down 
into area, weight, .use mid -size 
■ .d t" acccrtHrt. The company 

bought 24 new Boeing 727s with 
wide, doors, for large cargo, 
-taking the : fleet up to 64 air- 
'.planes 

- As a result Emmy, can now 
service 120 cities overnight and 
is no longer dependent on .foe 
scheduled freighters. 

Emery discovered that 90 per 


cent of its business was east of 
the Mississippi ■ River, so foe 
company dosed its Tennessee 

S lant and expanded to a “super- 
iib” fn Dayton, thereby 
reducing overhead and labour 
costa. 

The main thrust of the new 
Emery is speed. To this end 
it has updated its -.computerised, 
tracing and tracking system. 
With the new system a package 
can be traced with only foe 
company name, origin and 
destination. - 

All this activity was financed 
by Emery Worldwide’s first 
major move into debt Of the 
$100m raised, half came from, 
bonds, with banks putting up 
the rest 

With Emery so determined 
to fight back tod its current 
tod future rivals in an expan- 
sionist mood, margins in foe 
industry are sure to continue 
under pressure, at least as long 
as. demand is weakened by 
recession. But the pace of 
change must mean that Emery 
has seen red not a moment too 
soon. 


MOiAnjBaaBksbarixiffJMmsMMO^t timomann adappemarxjaaUarotiKaanXoalf. 




WMC Finance limited 

{Jnmrporfr tftd wfrh limited UlM^ra theJltatratim Capital Tanitej} 


U.S. $80,000,000 151 per cent. Guaranteed Notes due 1988 


Guaranteed by 


S. G. Warburg & Co. Ltd. 


Banqoje tie Paris et des Pays-Bas 
JBJ Tn te maHrujaT T.rmitorl 
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Dresdn.gr Bank Aktiengesellschaffc 
Mbrcfaa. Stanley International 
Swiss Bank Corporation Infiaiffitional Xhnited *. 


J&xoixj Intemx&mMl 


Jfanb Banking Corpaxtti(m. (BBC) 


atom^BanfcNedeaamdKV. ' • ; AmerBan* *KroMm»fia»l Jj^BmfldPoCen^xaaiicmCPBQ Arnhrid . «md S. BViirte oad gE . h e. 

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Sanca Nazigaato del Lsroro Bxaco ffiSoaix Bxiflt: of J5m «rlro 1 nUn « »Kni t4l ■ JBreflg Bnaa ri I^aib ttN.V. 

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Comity Bonk ' Crtdit CccmjeraaldftTrenc* .Ctdffi&dre* Hai Breton. Credil M a aa M Mkiemfa 


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TflTm l4i il renli Will n ml B u t pp ^ raBmWng Company inttnHttonal Knano Cdtelul mw Cc w i l lM, ■ | 

UvOti UaMtd j 

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MnWaroaawrijhnloeb . jtoyd> Ba^Marnxtioial ■ . . LcmdauftCo^rf*! Bates • foCB 

beMponud . - • Tinrw • ■ 

_ Tyfefrrfn Tiywfc i rii wiatifl Bal & Co. Sampd Jtoriegtt & Co. . Mogg*ufo»PMl&Cd, MUipanGtaantyLtd 


Z/ECBMmia&oDtf " ■ I ftnufariaaM BMowg 

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grr"4°! ’RfmljMbwiSnm 


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V, 





22 


$ 600 , 000,000 


International Bank for Reconstruction 

and Development 


$ 250,000,000 14% % Five Year Notes of 1981, due December 15,1986 
$ 250,000,000 15% Seven Tear Notes of 1981, due December 15, 1988 
$100,000,000 15%% Ten Tear Notes of 1981, due December 15,1991 


MORGAN STANLEY & CO. 

Incorporated 

THE FIRST BOSTON CORPORATION 


SALOMON BROTHERS INC 
GOLDMAN, SACHS & CO L 


MERRILL LYNCH WHITE WELD CAPITAL MARKETS GROUP 

Merrill Lgnck, Pierce, Fenner &Emith Incorporated 


BASLE SECURITIES CORPORATION 


ATLANTIC CAPITAL BACHE HALSEY STUART SHIELDS 

Corporation Incorporated 

REAR, STEARNS & CO. BLYTH EASTMAN PAINE WEBBER DILLON, READ & CO. INC, 

Incorporated 

DONALDSON, LUFKIN & JENRETTE DREXEL BXJRNHAM LAMBERT 

Securities Corporation incorporated 

£?. F. HUTTON & COMPANY INC. KIDDER, PEABODY & CO. LAZARD FRERES & CO. 

Incorporated 

LEHMAN BROTHERS KUHN LOEB L. KROTHSCHILD, UNTERBERG, TOWBIN 

Incorporated 

SHEARSONIAMERICAN EXPRESS INC. SMITH BARNEY, HARRIS UPHAM & CO. 


UBS SECURITIES INC. 
WERTHEIM & CO* INC. 
December 2i, 1981 


WARBURG PARWAS BECKER 

Incorporated 

DEAN WITTER REYNOLDS INC. 


NEW ISSUE 


AH these securities ha/mgbeensdU, ihis announcement appears asamatter ofnconionfy 


December 1981 


*> 


SAKAI HEAVY INDUSTRIES, LTD, 

ISakm Jukogso KabmhUa Kaisha) 


U.S. $15,000,000 


51 PER CENT CONVERTIBLE BONDS DUE 1996 

ISSUE PRICE 100 PER CENT 


TheNIkko Securities Co. (Asia) Limited 


DBS-Daiwa Securities International Limited 


Morgan Guaranty Pacific Limited 
Tokyo Finance (Asia) Limited 
HOI Samuel Pacific Limited 


Smith Barney, Harris Upham International (Asia) 
Incorporated 


Nippon KangyoKakumaru (Asia) limited 

Al-Mal Group 
Kuwait Internationa] Investment Co. s.a.k. 

Societe Generate Singapore Branch 


Dai'Tdd Kanpyo Finance (Hong Kong) Limited paiwa Overseas Finance Limited Fuji Internationa] Finance (HK) Limited 
IBJ Finance Company ( Hong Kong) Limited Lung Yuen Finance Co. Ltd. Mitsubishi International Finance Limited 

Mitsui Finance Asia I imbed Orion Royal Pacific Limited Sanwa Inte rnational Frnaprft 1 .hrrifwri 

Ikiyo Kobe Finance Hongkong Limited Ykmaichi International (HJC) Ltd. . 


PROFIT 





Profit, ifs your bottom fine . .‘end ifs the reason 
Louisiana hes been c leader in new business expansion for 


he last four years in the U.SA 

Louisiana beiisves in business, and we're ready to 
prove it to you. Louisiana's pro-business lews are contribut- 
ing factors, but that's not ciL We have a large cvailcbie wort: 
force that we wi I! train to meet your needs ct no charge, well 
work with you to find me best location, we’ll assist in securing 
financing, and a lor more 

Louisiana’s got what h takes tor your company to make 
.a profit. 


LOUISIANA 

WORKSw^ 


Write on your company ,'etterhecC 
for cur free report to: 

LOUiStANA WORKS 

Louisiana Deportment o' Commerce. 


15 Avenue Victor Huge. 
75116 PARIS. France 
Te’epftcre [33-1] 502-1 SOU. 
TelCx 620 3-3 F 


U.S. $30,000,000 

ZENTRALSPARKASSE 


UND KDMMERZiAlBANK- WIEN 

(Fototdtd bi a. savings instUmiim by raohrtian of thtCUy Courted qf Vienna} 




floating Rate Subordinated Notes DCie 1991 


Li accordance with the provisions of the Notes, notice is 
hereby given that in the six month Interest Period from 
Uth January, 1982 to 12th July, 1982 the Notes will cany 
an Interest Rate of 144*-% per annum and the Coupon 
Amount per UJ5. 55,000 will be U.S. 5377.59. 


Credit Suisse First Boston limited 
Agent Ranh 


EUROBONDS 


The' Aiiaeirtpn of International Bond Dealers Quotation* and yields 
appear* monthly in tha Financial Times. 

It will be published on tha following datas: 


WHJNESDAY 13th JANUARY. 
MONDAY 15th FEBRUARY 

THURSDAY 18th MARCH 

THURSDAY 15th APRIL • 

WEDNESDAY 12th MAY 

WEDNESDAY 15th JUNE 


1982 


TUESDAY 13th JULY 
WEDNESDAY 18th AUGUST 

TUESDAY 14th SEPTEMBER 

WEDNESDAY 13th OCTOBER 

THURSDAY 11th NOVEMBER 

TUESDAY 14th DECBVIBER 


Thera la a. limited amount of advertising spam available each month 
If your company )« Interacted In taking advantage of 
this offer pleaas contact: 


THE FINANCIAL ADVERTISEMENT DEPARTMENT 
-cm 01-248 8000 Ext. 326« or 3389 


Financial Tubbs Tuesday Jairaaiy fI 2; 1S82 

mdMvtets INTL. COMPANIES & FINANCE 


Swedish 
bank sets 


trading 


targets 


By William Dullforce 
Nordic .Editor, in Stockholm 


TRADING in bonds and an 
attempt to stimulate the 
secondary market in bank 
certificates (certificates of 
deposit) jwill be among -the 
initial targets for Carnegie- 
Montagu, Sweden’s first mer- 
chant banking venture, 
according to its chairman, 
Mr Staffan Gadd. 

Mr Gadd is chief execu- 
tive of Samuel Montagu, the 
London merchant bank which 
has subscribed 45 per cent 
of the stock in Carnegie- 
Montagu. Of the Swedish 
partners, the Carnegie inv est- 
ment company holds 45 per 
cent anrf the Skandia insur- 
ance company the remaining 
10 per cent. 

Agreement to establish the 
new venture was signed on 
Sunday. Yesterday the board 
confirmed the appointment 
of Mr Krister Wallin as 
Carnegie • Montague’s first 
managing director. 

Mr Wallin, at present 
finance director of ASEA, 
the Swedish heavy electrical 
group, has worked for the 
Swedish Investment Bank 
and is experienced in both 
international and Swedish 
domestic banking. 

Mr Gadd described the 
hi elusion of Skandia as im- 
portant. The Swedish insurer 
was very active in London, 
New York and Tokyo 'and 
would be a fruitful Dnk for- 
both Camegie-Montagn and 
Sam a el Montagu itself. 

■ Camepi e-Montagu will start 
a portfolio, management 
business as another. “ bread 
and batter” operation along- 
side its trading In bonds and 
bank certificates. 

Takeovers calling for the 
advice of * merchant bank 
are not too frequent In 
Sweden, but Mr Gadd 
emphasised the lack in 
Sweden of independent, 
neutral consultants for com- 
panies • which run into 
fiinantial trouble. The 
Swedish banks usually have 
claims to protect 
Camegie-Montagu will- not 
be able to call itself a 
merchant bank, for which 
there is no term In Swedish, 
and it will .have to work 
under current Swedish regula- 
tions for finance companies. 

Capitalisation is SKr 33m 
(S6m), of which SKr 22m is 
share capital. Carnegie- 
Montagu hopes to be fully 
operative “In a few months ” 
after obtaining official sanc- 
tions. It expects to build up a 
staff of 10 to 15 in the first 
year. 

Other Swedish finance 
houses are reported to be 
looking for foreign partners, 
British or American, to fallow 
Carnegie-Montagu’s example. 
Mr Gadd said it would • be 
“all to the good” If more 
players entered Swedish 
secondary markets and helped - 
to accustom people to the 
concept- of merchant banking. 

Mr Gadd. a Swede, under- 
Hned the need for long 
recognised by Swedish com- 
panies, banks and the RQts- 
bank (central bank) tor a 
broadening of the Swedish 
bond market and the estab- 
lishment of ' functioning 
secondary markets. 

Swedish bankers see Samuel 
Montagu's Swedish venture 
as also preparing for the 
entry into Swedish banking 
of its parent, Midland Bank 
of the UK, once the barriers 
for foreign banking opera- 
tions are lifted. A commis- 
sion appointed by the Govern- 
ment is studying the matter. 


Dutch bank 


sees growth 


By -Charles Batchelor In 
Amsterdam 



GROSS PROFITS of AJgemene 
Bank Nederland (ABN) rose 
strongly last year but 
increased debt provisions 
meant the growth at net level 
was smaller. The net result 
continued the trend of recent 
years to show a fairly gradual 
growth of profits, said Mr 
P. J. Kafff. a member of the 
managing board. 

Foreign business con- 
tributed sharply higher profits 
and turnover while growth in 
the Netherlands was more 
gradual. ABN opened five new 
foreign offices last year and 
offices already established 
improved their * results' 
significantly. 

The further increase in debt 
provisions follows die doub- 
ling of these provisions In 
1980 to FI 300m (£L2lm). In 
1980 profits rose by 13 per 
cent to FI 309m on a balance 
sheet which increased by 25 
per cent ‘to FI lOObn. 


France blocks 



U.S. computer 



BY TERRY DODSWORTH M PARIS 


THE French Industry Ministry 
has vetoed a Fracco-American 
computer co-operation deal as 
the first of several intervention 
moves aimed at developing 
France’s on eletcronics indus- 
try. 

The Umisty’s decision pots an 
end to plans for a link between 
SE3IS, a subsidiary of ' tBe 
Thomson electrical group, and 
Systems Engineering Labor- 
atories of Florida. Talks between 
the two companies began last 
summer, leading to an outline 
agreement for the French group 
to rnar mfartn r e SEL’s range of 
sophisticated mmf - computers 
under licence. 

As an alternative to this 
arrangement Thomson has been 
told by tile Government to open 
talks with CO Honeywell Bull, 
France’s leading computer 
group. <m the development of 
common components. ■ ■ 

The significance of tins Indus- 
try Ministry didst is that It 
marks the beginning of a new 
attempt to find a French solu- 
tion to weakness of the domestic 
computer industry . Both Thom- 
son and Cii are to become 
vehicles for French expansion 


in this sector following their 
nationalisation within the next 
few weeks. 

One of the fundamental Ideas 
of this development is that it 
should ensure greater independ- 
ency from UJS. -technology, 
giving a degree of' . French 
mastery over the whole of the 
manufacturing process 'for com- 
puters, from chip production to 
the finished articles. Thus a 
number of further reorganisa- 
tions and . collaboration agree- 
ments involving other small 
computer companies can be 
expected as the hew policy 
begins to;be. put into operation- 

The biggest question mark 
ever this restructuring is posed 
by Cii, which moved into heavy 
losses last year after a brief 
period of profits in the wake 
of the last Government’s sup- 
port scheme. 

Cii will need more .aid if it is 
to survive in ■ its present form 
and develop new products — a 
problem that will become even 
more acute if Honeywell Infor- 
mation' Systems, the U.S. group 
which holds a 47 per cent stake 
in Cii, is persuaded to reduce 
its participation in line with 


the Government’s aatiflnaika.- 
tion plans. 

.Under Cifs present structure, 
it would have-been able toleea 
-on Saint Gdbain, ife . leading 
shareholder, for this financial 
help. But the Government is 
npw considering a project to 
divorce the computer, copipany 
from Saint Gobain and refinance 
it as an independent business 
in which HIS may hold x mwfe- 
reduced minority stake. 

• The Ministry , has made !• it 
dear that this planned -re- 
organisation of Cii, although 
probably • involving sobs ceV 
laboration with Thomson, will 
not mean a merger. • 

While Cii is firmly embedded 
in the medium-size computer 
market, Thomson’s role wSlbe 
in the smaller computer indus- 
try, where France has adu ster 
of- moderately-sized companies. 
These companies, which indwte 
the recently-rescued Logabax, 
received substantial aids from, 
the last Government But the 
relative weakness of the indus- 
try is demonstrated by a deri- 
sion of the new Government: 
to earmark a farther FFr 60093 

(BXOSm) of assistance for* ifee 
sector. 


Weak sales hit German retailers 


BY KEVIN DONE IN FRANKFURT 


'-to 


WEST GERMANY’S leading 
department store groups have 
been hit hard by the depressed 
state of retail sales 
Kaufhof, the country's second 
largest department stores group, 
said yesterday that group turn- 
over fell by 1.7 per cent In 1981 
to DM 8.65bn, while the sales 
of its main department stores' 
operations dropped by 4J) per 
cent to DM 5.75bn. 

Karstadt, the country's lead- 
ing stores group, reported a rise 
of 3.2 per cent In the turnover 
in its 155 stores to DM 9-Sbn, 
but this increase was chiefly the 


result of the special promotions 
launched to boost sales in the 
company’s 100-year jubilee. 

Karstadt continues to be bur- 
dened too by the performance 
of the various subsidiaries taken 
over from the ailing Necker- 
mann concern.. 


NUR, Neckermann und 
Reisen, - Karstadfs travel sub- 
sidiary, suffered a drop of 5.2 
per cent in the. number of holi- 
days booked in the year to the' 
end of October 1981, although 
turnover showed a marginal 
nominal increase of 0.6 per 
cent to DM lJZbn. 


The Neckermann maiL order 
operation suffered a dnJp;©r!L2 
per cent in'sales to DM l:G38fen, 
while the factorv-built housing 
subsidiary reported a faH of i 
36.8 per cent in the value of 
houses completed in 1981. ' t. • ' 
Kaufhof enjoyed greater 'fifljtfr \ 
cess from its subsidiary eflria- , 
tiohs and its mail order opga- 
tion, Friedrich Wenz, 

-sales by -'£7 per cent 

DM' 497m. ITS, its travel ^ 

sidiary, reported an increastfof 
7 per cent in holiday bookings 
In 1981 and a rise in sales? of 
14 pier cent to DM 430m. /■ 


Ciba to show increased 
sales and profits for 1981 


BY OUR FINANCIAL STAFF 


CIBA-GEIGY, the Swiss:based 
chemical group, expects - to 
unveil higher sales and profits 
for 198L 


Turnover in most product 
sectors grew faster than the 
average inflation rate and earn- 
ings also improved, Mr Louis 
von Planta, the president, writes 
in an employee newsletter. 


The company's performance 
is “remarkable" considering 
the difficult situation of the 
European chemical industry. 
However, it gained from the 
weakness of the franc in the 


first and third quarters of the 
year, he «r piarn«. 

In 1980 group net profit Ml 
to- SwFr 305m ($167m) from 
SwFr 327m in 1979 on turnover 
of SwFr lL91bn, against 
SwFr9.89bn. 

The outlook for 1982 remains 
mixed, Mr von Planta says. The 
franc has firmed and the 
recessionary tendencies among 
industrialised' nations have 
spread. 

A large part of Ciba’s l981 
turnover and earnings ■ • was 
accounted for by agricultural 
and pharmaceutical products. 


• • - 

Daf Trucks’ second half recovery 


DAF TRUCKS, the Dutch 
truck maker in which. Inter- 
national Harvester of the 
U.S. has a major sharehold- 
ing, made a profit last year In 
contrast to earlier expecta- 
tions of a loss, writes our 
Financial Staff. 

The company made a profit 


at FI 23.8m in 1980. and yes- 
terday board chairman Piet 
van Doorne . said that a 
recovery { ih second half 
trading had left Daf in the 
black overall in 198L Results 
were negative in the first 
1981 half but showed an im- 
provement thereafter : . 


Samsung Holds 
TV plant talks 
in Portugal 


By Diana Smith in Lisbon 


NEGOTIATIONS are .under 
way for a 85m joint venture 
between Samsung of South 
Korea and Emacet of Portu- 
gal, and -a UK company to 
produce . 150,000 colour tele- 
vision sets a year mainly for 
-export, at a new factory out- 
side Lisbon. 

If negotiations are successful, 

- Samsung will hold 55 per rent 
of the capital, Emacet 35-Jter 
cent, and Product Resflte; 

. International of the ifiC-JO 
per cent Samsung, tine jof 
Korea’s leading nnnpwfes, 
and PRI said they did, not 
want to comment on the 1 pro- 
posed deal while talks wfjre 
still under way. 

This would be the first .Sorth 
Korean venture in Portugal, 
where the authorities are 
eager to. attract new ' invert- 
meht from the Middle and Far 
East, especially in export- ... 
oriented products. The ven-.-. 
tore must be authorised by 
the .Foreign' Investment 
Institute. ' 


Thisomowicmentappemasa matter of mmiatdy 



evi 


560,000 shares of Pts 1000 each par value 


„ hawlxOTpiiccbascd 

M ■ , . - 

La2ardBrothers &C©* Limited 

andplaoedptirairiy with iiatitotioDsiattea iTferf 


Stockbrokers to Banco Uiquijq, SLA; 
ILB. Savory Co. 





6fNew.*Hai 

• I^pttJ^eaaiAierisSt 


HITACHI & COMPANY 


ORDINARY BDRf 
ISSUED BY CITIBANK NjL 

NOTICE 15 HEREBY GIVEN that a dividend due to holder, of 
w* *? ?* ^ ptem ^ r *981 may now he claimed at the rate 
S-T t'S" l n P res « tt «?n of no. 26 deached from 

BDRs Of ID shares each and coupon no. 21 detached from BDRs 
of 80 shares each to the undersigned. 

?”***. 5S vi . dend *** Shlre — US$0.01371 1 

Leu 15% Japanese Withholding Tax = USS050K057 


' - N«* pi^end ■ US$0.011654 

United Kingdom Income Trie at the reduced rate of 15% in the £ 
will be deducted from the amount of this dividend except In cases 

“ com £ ni<Ki *»y * United Kingdom inland 
Revenue affidavit of non-residence. 

Citibank NA. 

11. Old Jewry, 

London ECJl 


MITSUI & COMPANY 1 ? 

ORDINARY- BDRs ' 

' lc I55UED *T V;; - V : VL 

EDRs as at S^ptem^lS^oS* 1 *- dividaid, due to, Mditfi ^ 
shown S ^ ^«nv bi towd ^t the, r«t» 

Japane^ WyjlrojtnDg Tax 
_ Net Drviiiend • . / a; 

vmZ SKt™ ■!"“» T« 





Citibank NA. 
11. Ofd Jewry 
London E.C2 


■residence. 


, 4 . • 








A 

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■ "l ’ 



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hi 












23 


: 12 1982 


COMPANIES and FINANCE 



acqiu 



>La&oif|§r 

? *y iwn: jon«te/|«jpftS ^ j §r^ ; : 

•POWER TE'clENU&KaES 

■ (FowertedOy 

- electrical prodn^icomp^iiy^ is 
. to acquire a edfffeniB&ig interest 

■ In the privatd^ waejS Xascon 
•LififttiTBg ltefc®tx!0js,:tthe odun- 

Xarg^I^mgftHforo of 
, commercial *>. a£t$_. ^idtistrisd 
lighting. ^The^ajcgsiidtCon is 
xetroact?^ ,&.^0^4 19&L 

3 ^2 

. .per : _-ceqf : of . lateon’s issued 
capital, for. '. (flU9mJ 

cash; .. A- ■ fijrtiMir .-. 2^526 . shares, 
eonivaleai Jte7&4 per. cent of 
La&con’s share" -cajafeJ,;are ’be- 
ing acquired lsj Allied. Elec- 
ironies C^toon> for R9.95m 
cash.Altron’s mainasset is a 
56.6 pec pent- interest in the 
electronics company, •'■ Allied 
.Technologies. (Altech), which 
in turn . owns 63 per cent of 
Powertech. . 

--PaweWccfa- ' is 'raising, the 
funds for its purchase by a 
fights issue to Altech «f 15.3m 
steeper ceigt convertible pre- 
ference shares of- Jane Rand 
each. Attest haa.lnlutum re- 
notmeed 87 : pe* tent of these 
shares . in ' favour of Powertech 
minority - shareholders. Prefer- 
ence shares will he -convertible 
on Mairch-T 1985 into Power- 
tech ordinary shares of 60 cents 
each, in tiie ratlo-'of five ordin- 
ary drones for -three preference 
shares. - 

In the year to June 1981 Las- 
con earned after tax profits of 
-R4Jm on sales of- about R60m. 
In the 6 mpnths.to December 
its profit improvement was con- 
sSstetft with, that of the rest ox 
•the industry, .say the directors. 

In the year ended February 
1981, Powertech’s turnover was 
R22.4m and. after tax profits 
RULSm. Had ‘the Lascon acqui- 
sition been effective in - that 
year, Powertech earnings would 
have, increased from 5 cents to 
&8 cents a share, said the dire©- . 
tprsL.-The effect , of the transao- 1 
tions omXltnm J could .'he .-to 
'hootst eamfags per share by 9 
cents to 724 cents a share. 


near agreement 
©n Reksten tanker debts 


BY FAY GjESTO EM OSLO 

HAMKRQS- BANK; the UK ponies with stakes fin the three 
■inenSmt haok, appears to have : tankers have put forward pro- 
made an additional concession posals about- the vessels' future 
in- an attempt to safeguard the which Hambros and 
agreement - it reached last Guarantee • Institute 


\ 


month . with the Norwegian 
State-hacked Guarantee Insti- 
tute and creditors of the 
trouMed- Reteten tanker group. 
. The agreement, . . whkh 
involved nine of Reksten’s fleet 
of 12 tankers, was tereotened 
because, some crec&toffs — those 
with interests in. the throe stupe 
not uarty to the agreement— 
refused to relinquish tfwte right 
to soe the bank- It Is under- 
stood that a coaafitioh. of the 
deal was that ail of Reksten's 
creditors would agree not to 
sue. • 

Now' two ctf <6e ; ftna: Nor- 
wegian ship mortgage coin- 


brokers which, have ■ priority 
mortgages in them. 

The Kristiansand companies 
JJJJ 'ft 8 * 6 a total* stake nf about 36 
o® 7 ® per cent in the Vespasian, and 
one of the other brokers has 
a 48 per cent interest- The two 
non-Kris tiansand-based brokers 
have stakes in the Cyprian. 

Mr Lars Sctaage, director of 
the Kristians and companies. 


accepted. 

If— as' expected — the other 
two also agree, the last barrier 
to a final- solution of the 
Rseksten tangle . will probably 
have been removed. 

. The arrangement proposed— 
by • two jotetlyadmMustered yesterday refused to reveal 
ship -mortgage companies in what Hambros would pay to 
Kristians and — is that Hambrds acquire lpO-per cent ownership 
should buy the half share held, of the Octavian. . He said the 
by one of them in one of arrangement would not be final 
Reksten's least valuable vessels, until the first -deal (between 
the 11 -year-old Octavian, and Hambros,. the Guarantee Insti- 
thal the two newest vessels in tute and other creditors) had 
the Reksten fleet, the Cyprian been signed, and until the Oslo 
and Vespasian, should go “ dear and Bergen mortgage companies 
of all debts," to the ship had also given their consent 


Aralxs lend more via Bahrain 


BY MjARY HUNGS IN BAHRAIN 


BAHRABSt HAS become a raore 
important channel for Arab 
funds'' over Ike paqt year, 
aoconkng to the Governor of 


tfee-Bateten Monetary Agency 
(BMA>, Mr Abdulla Saif. 

At Ibe end of September, 
'ffttfijraa# offshore banking units 
'(CEB Us) were bterowteg . USB 


g.lbn net from Arab countries, ted the activity .of major Arab. 
The OBUs lent US$5 -2bn of that banks in the market - 
1© Asia and Latin America, 'and . Tofel assets and liabilities of 
US$2.6bn to Western Europe, (the 64 OBU’s reporting to the 
The'. year . earider figures were . bMA at end-September were 
US$4.6bn, US$3 .4bn, and US$ U-SL$46.4bn, representing a 12- 


L4ton respectively. 

Mr Saif said the increased 
volume of outward flows reflet- 


Foreign bond issues in Kuwait 


month growth of 38 per cent. 
The U.S. dollar share of the 
market remained at 67 per cent, 
but the fastest-growing elements 
had been the; major European 
currencies. Mr Saif said these 
currencies bad strengthened the 
market at a time when the 
Knwaiti dinar and the UAE 
dirham bad become relatively 


EIGHT Kuwaiti investment and Trading Contracting and -Invest- 

■finatiriTBt - houses made inter- mezrt Company, Kuwait Invest- 

national bond issues totalling meat Company, Arab Financial less important to OBUs. BMA 
$L47bn in the seven years ended Consultants Company, Financial statistics also showed a sub- 
last December. AP reports. Group of Kuwait, the Kuwait stantial increase in turnover. 
The issues were made for 64 Financial Center, Kuwait Inter- both in deposit taking and 

national Finance Company, and 
National Bank of Kuwait 
Among the key borrowers 
were the Korean Development 
Bank, the African Development 


international borrowers in 18 
countries . including Japan, 
France,. Sweden, Finland; Spain 
and Yugoslavia. 

■ The Kuwaiti houses that led, 


oo-man aged, and contributed to Bank, Banco Nacdoaale de 
tiie.'" bond issues were the Credit Rural of Mexico, Finnish 
Kuwait "InternationaS Invest- Municipalities, and the Republic 
mefit Company, Kuwait Foreign of Indonesia. 


foreign exchange. 

In the domestic market, the 
overall, figures had been 
si gnifican tly affected by the 
transfer of some of the 
National Bank of Bahrain’s 
business to its newly opened 
OBU. 


CONTRACTS AND TENDERS 





.ft J\. . -j, . ■ 


TENDER PREQUAUFTCATTON 
; QATAR GENERAL PETROLEUM OMIPORATION 
HEADQUARTERS BUILDING - WEST BAY 

Qatar General Petrotenm Coiporation will shortly invite bids for the complete 
construction contract for the New Headquarters Building, West Bay, Doha, Qatar. 

The New Headlquaiters Building comprises' approximately 21,000 square metres of 
standard foijr korey offices "oyer lower parking floors for approximately 340 
cars. The New Headcjuarters 'is sited adjacent to the existing QGPC Headquarters 
and the works inSiide various connections between the two buildings. 

The works will comprise: piling by approved subcontractors, general building works, 
engineering- services including air conditioning, finishings, fixed furniture and; 
equipment mid external works including planting. Facilities- to be provided indude 
a caf eteria* office accommodation, conference rooms etc. 

Only prequalified firms will be invited to participate. Acceptance for prequalification 
will be limited to firms who have during the last 5 years— built at least one project 
of similar type, size and quality and— executed at least 3 major projects in die Gulf 
area... • •' 

Inter^ted firins sbotdd^snWdt Applications for preqnalification in duplicate not 
later than January 21 1982.' ' 

and 2nd copy to: 

Weidleplan Consulting GmbH, 

Planer Architekten Ingenierue, 
Postfadi 30 08 09, 

D-7000 Stuttgart 30, 

WEST GERMANY. _• 

Telex: 722313 WEIDL D .. 


1st copy t° be sent to:-— - • • 

The Manager,. 

Engineering and Construction Dept, 

QGPC (HQ), 

PO Bm 3212, " 

DOHA— QATAR. 

Telex:4^3JPETCOR pH^ - • 

in coyers stating 

DOHA^ “ " - ■■■"’/ 

Application must indude:-fT- . 

1 Fuji details of cbmpany inclxicfing forms of incorporation and darification of 

proposed jomt venture. 

2 Complete finandal statements (audited) for the last five years induding . annual 
: "'.-.v l;< :tmSQfWr-nx Qatar and;the Middle East 

3: AM^otcm&L] 

:lr r . ' ' witin»stracf (^ipic iiuii Tiin&r - - 

4 " 'A fist of comparable completed projects with brief details of value, involvement, 
programmed md actual dates of completion. ... 

' ft’is intended to invite bids in March 1982 from a selected list of prequalified firms 
who Will be notified accordingly by QGPC 

■ The lender period will be 12 weeks and Bills of Quantities will be provided. Tender 
bonds will be? required. 

27 months and the contract Will. 

: be turnkey fixed price. 



Nissan in 
unsecured 
bond issue 

By Richard C. Hanson in Tokyo 

NISSAN MOTOR, Japan’s 
second largest vehicle manufac- 
turer after Toyota, will . issue 
nest month Y60bn of unsecured 
convertible- debentures in' -ike 
Tokyo market Tins will be only 
the second time a Japanese 
company has been allowed to 
float a bond without a mortgage 
on physical assets, following 
Matsushita Electrical Industrial 
in -1979. 

Nissan will use the proceeds 
of the issue,' convertible until 
March 1988, to finance part of 
its ambitious capital spending, 
programme -in Japan. - 
list year, the company raised 
money by issuing 60m Shares in, 
Europe, in She Jonh ' of ! 
European Depositary Receipts 
and £5Qm in a sterling convert- 
ible bond issue. 

Meanwhile, the company is 
expected shortly to decide 
whether it will go ahead with a 
plan to build a major assembly 
plant in the UK. 

Japan expands 
ship subsidies 

THE JAPANESE interest rate- 
subsidised shipbuilding pro- 
gramme will be expanded in 
the year to March to 1.84m 
gross from the planned 1.24m 
tonnes, Reuter reports from 
Tokyo. ' ■ Gross tonnage built 
under the programme in the 
previous financial year was 
1.64m. - 


NTN Tciyo capacity . 

PRODUCTION capacity at NTN 
Toyo Bearings Dusseldorf plant 
is 2.5m bearings per month, not 
2.5m per year as stated in an 
article on January 5. 


«■ 



nisannotamttvotappeasasamatlerofieoonieRty 



IRELAND 

£ 120^000 

Medium Term Sterling Facility 


airangadty 

Ulster Investment Bank Limited 

in conjunction with 

National Westminster Bank Limited 


managed by 

. N .. , . Allied Irish.lrwestment Bank Limited 
Amsterdam - Rotterdam Bank N.V. (London Branch) 
CIBCJJmited 
County Bank Limited 
The Fuji Bank, Limited 
Irving Trust Company 
National Westminster Bank Limited 
The Royal Bank of Scotland Limited 
• The-Sanwa Bank, Limited 
Standard Chartered Bank Ireland Ltd. 
TheTokai Bank, Limited 
Ulster Investment Bank Limited 
TheYasuda Trust and Banking Company Limited 

Agent 

International Westminster Bank Limited 


December 1981 


A 


This announcement appears as a mattor of record on/y 



REPUBLICOFAUSTRIA 

US$400,000,000 
Medium Term Loan 


... .’ LaadManagedby 

Genossenschaftliche Zentralbank AG, Vienna 

Girozerrtrale und Bankder 
osterreichischen Sparkassen AG 

Algemene Bank Nederland NV 

BankAmerica International Group 

The Bank of Tokyo, Lid 

DG BANK Deutsche Genossenschaftsbank 

The Long-Term Credit Bank of Japan, Limited 

Midland Bank Limited 


CreditanstaJt-Bankverein 

Osterreichische Landerbank 
Aktiengesellschaft 

Amsterdam-Rotterdam Bank NV 

The Bank of Nova Scotia Group 

Citicorp International Group 

Gulf International BankB.S.C. 

Manufacturers Hanover Limited 

National Westminster Bank Group 


BgnkfQr Arbeit und 
WirtschaftAS . 

The Fuji Bank, Limited 
Salzburger Sparkasse 


, TheSumitomo Bank, Limited 

Managed by 

The Bank of New \brk 

Osterreichische Postsparkasse 
RS.K. 

Steierniarkische Sparkasse 


DIE ERSTE 

osterreichische Spar-Casse 

Osterreichische Volksbankerv- 
Aktiengeselischaft 

Zentralsparkasse und 
Kbmmerzialbank, Wien - 


Co-Managed by 


Osterreic^iscteX^ecTrtdn^ituL. The Mitsubishi Trust 
Aktiengesellschaft and Bahtoig Corporation 

Provfctedby 

-Iftjggi rig r P B arilc NBderlandtW — * AJIgemeineSsassische Bank AG 

Amsterdam-Rotterdam Bank N.U Arab Jordan Investment Bank 


Bank Bumiputra Malaysia Berhad 
The Bank of New Vbrk 

. The Bank ofTbkyPi Lid- 

London Office 

• Breisach Pinschof Schoeller 
Bankkommanditgesellschaft, 
Vienna 

County Bank Limited - 
DG BANK INTERNATIONAL 
Sod&tti Anonyme 
E van Lanschot Bankiers 
.- ^Cura9ae) NV , 

{■ «- -Gulf International-Bank BS.C. 

The Long-Term Crecfit Bank '. 

' orjapan,Umitkl.V 

The Mitsubishi Trust and 
Banking Corporation 
Osterreicbischetanderbank — 
Aktiengesellschaft 


Bank of America NTOS A 
Banque NordeuropeSA 

Bank Winter und Co KG 

Central Wechsel- und 

CrecfitbankActiengesellschaft 

Credrtansta/t-Bankverein 
DIE ERSTE 

osterreichischeSpapCasse 

Genossenschaftliche" 

. Zentralbank AG, Vienna 

, intera^ionai Westminster Bank 
Limited 

Manufacturers Hanover Bank 

‘ (Gue(hse^ Limited - 

The Mitsui Bank; Limited 

Osterrek^ischePostsparkasse 

P.SJC 


AktiengesellsdTaft 
SaizburgerSparkasse 

.. Schoeller &Cix,- ...: 

Bankaktiengeseflschaft - 

The Sumitomo Bank, LMed 

Zentralsparkasse und 
• Kommerzialbank, wfen 


DecembetlSSl. 


London Branch 
Sanpado-LarianoBankSA- 
Luxembourg 

Sparkasse Innsbruck-HaD 

The Sumitomo Trustancf * 
Banking Ca, Ltd. 


The Mitsui Bank, Limited 


Allgemeine Sparkasse in Linz 
Banco Espirito Santo e Comerctai 
de Lisboa London Branch 
Bank fQr Arbeit und Wirtschaft AG 
The Bank of Nova Scotia 
Channel Islands Limited 
Bayerische Landesbank 
IntemalionalS. A 

Citibank(Austri^ Aktiengesellschaft 


DaHchi Kangyo Bank Nederland NV 

The Fuji Bank Limbed 

Girozentrate und Bank der 
osterreichischen Sparkassen 
Aktiengesellschaft 

Kyowa Bank Nederland NV 

Midland Bank Limited 

The National Bank of Australasia 
Limited 

^terreidiischeWcsbanl^ 

Aktiengesellschaft 

The Saitama Bank, Ltd 

The Sanwa Bank, Limited 

SteiermarkischeSparkasse 

Yhmaichi International 
(Nederland) NV 


Crecfitanstalt-Bankvereih 



24 


Financial Times Tuesday January 12. 1982 


Companies and Markets 


WORLD STOCK MARKETS 


NEW YORK 


Jan. Jan. 
8 ■ 7 


Jan. Jm. 
8 7 


Jan. Jan. 
8 7 


Jan. Jan. 
a 7 


ACF Industries 583* 

AMF- - i 85% 

AM Inti f 4% 

ARA 26% 

ASA j 43 i B 

AVXCorp.-. i 15% 

Abbott Labs j 26% 

Aetna Clove 21 

Adobe Oil ft Gaa. 287g 
Advanced Mioro. 1 16% 
Aetna Life ft Gaa 42% 
Ahmanson (H.F.)) 14% 
Air Prod ft Chem; 36% 

Akzone 10% 

Albany Int 27 

Alberto-Cutv 12% 

Albertson's 25% 

Alcan Aluminium 22 
Alco Standard .... 19% 
Alexander &AI.... 29% 
Alegheny 30% 

Allied Corp« 447® 

Allied Stores....... 26% 

Aiiia-Chalmers 16% 

Alpha Portd 12%' 


Columbia Gas.. J 31% 51% 
Columbia Piet... J 42% \ 43 
Combined int—..< 22% i -a!** 
Combustn. Eng„., 33% | 35% 
Cmwitti. Edleon J 20% i 20% 
Comm.Satelit«...i 61% ! 60 


at. Att.Pac.Tsa. 4% 4% 

fit Basina Pet— 4 
GtNthn.Nehoosa, SB 35% 
Gt West Fin and., 14 % 14% 

Greyhound [ 15% 16% 

G rum man i 29*8 ao 

Gulf ft Western.-; 15% I ie% 


Comp Science. .J 14% 

Cone Mills — , 29% 

Conn Gen. lnn._! 49% 

Conrac._ |4f« 

Cons Edison. 31^4 

Cons Foods- : 30 • 

Cons Freight.. — ; 40 

Cona Mat Gas i 49% 

Consumer Powerl 17% 
Cont Air Lines.-.) 4% 

Conti Corp.~ > JS% 

Conti Group ; ff % 

Cent lllionis — | 33 

Conti Telop , 16% 

Control Data.— .] 34% 


Alcoa J 

Amal. Sugar—... 

Amax. —..j 

Amerada Hess ...* 

Am. Airlines 

Am. Brands - 

Am. Broadcast's; 

Am. Can .-.i 

Am. Cyanamld _.l 
Am. Elect Powr. 
Am. Express....-.! 
Am. Gen.lnsncBJ 
Am. Holst A DR-. I 
Am. Home Prod.. 1 
Am, Hosp. Suppy: 
Am. Medical Inti. 1 

Am. Motors... ! 

Am. Nat Peaces. 

Am.Petfina. 

Am. Quasar Pet.! 


Cooper Inds. — 1 
Coo ra Adolph 
Copperweld .! 
Corning Glase^...! 
Corroon Black ....; 
Cox Broadcast's. 

Crane 

Crocker Nat ■ 

Crown Cork ........ 

Crown Zell 1 

Cummins Eng. 

Curtiss-Wrlght... 

Damon....—.--.. 

Dana — . 

Dart ft Kraft . 

Data Gen 

Dayton -Hudson...' 

Deere 

Delta Alr r : 

Denny's...- — 


Gulf Oil- '■ 33 

HailfFB) i 27% 

Halliburton— —j JB7g 
Hammarmlll Ppr. 27% 

Handloman 15% 

Hanna Mining— ' 30% 
Mareourt Brace.. 1 17% 
Hamischfeger — 11% 
Harris Bancp— 277s 

Harris Corp 38 

Haraco—— 18 
Hecia Mining — 11 

Heinz (HJU 27% 

Heller Inti— 19% 

Hercules 22 

Herahey 35% 

Heubleln - 33% 

Hewlett Pkd 41% 

Hilton Hotels 37?e 

Hitachi— — 59% 


MGM - 1 7% 

Metromedia ...— '163% 
Milton Bradley—.- 20% 
Minnesota MM ... 53** 
Missouri Pac— .... 80% 

Mobil — ! 24 

Modem Merehg.l B% 

Monaseo ■ 12% 

Monarch M/T 19% 

Monsanto- 69% 

Moore McCmrk- 27 
Morgan (JP)— 51 is 

Motorola. ...... .i 54% 

Munsingwear— | 14% 
MurphytGC) i 14% 


Murphy Oil— j 29% 
Nabisco Brands-' 30 
Naleo Chem 49% 


Schlitz Brew J -.! 10% 
Schlumberger ... Bi% 
sCMo..— — 1 Hi 4 
Scott Paper.— 16% 
Scudder Duo v„ 12% 
Seacon — — 20% 

Seagram 58% 

Sealed Power— 30 

SearlelGD) — 31% 

Sears Roebuck— 17% 
Security Pac ...-. 40% 

Scdco- — ■ 51% 

Shell Oil— 39% 

Shell Tram 29% 

Sherwin-Wms— .. 20% 

Signal 25% 

SI g node 1 34% 


Early Wall St retreat 


dfl 


Nat pclnduitrlesJ 23 

Naa can. I 20% 

Nat Detroit-..—. 23% 
Nat Diet. Chem- 23% 
Nat Gypsum...... 2 Ha 

Nat Medical Ent 17% 
NatSemlcductr. 17% 
Nat Service I net, 25 
Nat standard— 16% 

Not Steel 25% 

Natomas 28% 

CNNB 14% 


Holiday Inns. ’ 

Holly Sugar 

Homestake 

Honeywell 

Hoover 

Hoover UnJv— .: 

Hormel Geo 

Hospital Sorp— 
Household Inti ...' 

Houston Inds : 

Houston NtGes..., 
Hudson Bay Mng' 

Hughes Tool 

Humana.——! 


27% ; 37% 
48% j 48% 
39% 35% 

■577a • 68% 
9% * 9% 
19% : 19% 
I77 a 18% 
34 ! 33% 

15% | 15% 
18% 18% 
41 41% 

20 % 20 % 
36% 36% 

35% 35% 


NCR— I 43% 

New England El.. 24% 
NY State E ft G.„. 15% 

NY Times. 34% 

NewmontMInlng; 40% 
Niag. Mohawk—. 12% 

NICORInc- : 33 

Nielsen (AC) A-...' 45% 
NL Industries.—.' 35% 
NLT -i 23% 


Simplicity Patt-i 10 
Singer.-.— —I 15% 

Skyline 14% 

Smith Inti.. - 41% 

Smith Kline. 645s 

Sonestalntt— 10% 

Sony— 17% 

Southeast Bankg 16% 
Sth. Cat Edison-: 287 S 
Southern Co— -J 12% 
Sthn. Nat Res— - 
Sthn.N. Eng. Tel J 43% 
Sthn. Pacific 38 

Sth. Railway—.... 92% 

Southland 31% 

SWBancsharesJ 30% 

Sperry Corp. • 34 

Spring Wills— j 23% 
Square D— 28% 

Squibb ( 30% 

Std.Branda Paint 25% 


Am. Standard — 

Am. Stores— 1 

Am Tel. A Tel : 

Ametek Inc- 1 

Am fee — ; 

AMP 

Amstar .. - I 

Amstead Inds. j 

Anchor Hoc kg— . 
Anheuser-Bh — 

Areata. 

Archer Daniels...] 
Arm co — — , 


Armstrong CK. 
Aaamera Oil.... 

Asarco 

Ashland Oil — 
And D Goods- 
AUantlc Rich— 
Auto-Data Prg. 

Avco — . 

Avery Inti. 


18 I 157b 
11 % 1 11 % 
25 I 25Sg 
297 b 29% 

25% 25% 

44% 437 8 

26% 25% 

19% 19% 

25 25% ' 


Dentsply Inti 1 

Detroit Edison I 

Diamond Intf 1 

Diamond ShankJ 

DiGiorgio.— 

Digital Equip i 

Dillingham J 

Dillon ....— j 

Disney (Walt).... J 

Dome Mines _l 

Donnelly IRR) 

Dover Corp 

Dow Chemical.... 

Dew Jones.— 

Dresser- 

Dr. Pepper. 

Duke Power. 

Dun A Brad - 

Du Pont 

EG AG— -.1 


Husky (Oin. I 

Hutton (EFI..-,...i 

C Inds • 

NA Corp | 

U Int 

deal Basic lnd.„; 

deal Toy > 

Cl ADR > 

mp. Corp. Amor! 

NCO 

ngersol Rand—-, 

nland Steel 

ntel [ 

nter First Corp.J 

nterlake I 

ntarNorth ' 

BM i I 


asfl 1 8% 

36% 36% 

345b 337 b 

44% 44% 

13% 13% 

22 217 a 

67 8 6% 

5% 6% 

10% 10% 
14% I 14 
56% 56% 

24% 24% 

21 % 21 % 
27% 26% 

32% 33 

297 8 297b 

567s 56% 


Norfolk & Wean I 50% 
Nth. Am. Coal. ...t 25% 
Nth. AmJPhirips.1 38% 
Nth n. State Pwr.. 24 
Northgate Exp... 4% 

Northrop 51% 

Nwest Airlines... 26 
Nwest Bancorp.. 24 

Nwest Inds 74% 

Hwestn Mutual... 10% 
Hwestd Steel W. 245* 

Horton - 40% 

Horton Simon.—. 19% 
Accidental Pet... 23% 
Acaan Drill Exp. 26% 

Agdan 26% 

Agllvy A Mrth— 31% 

Ahlo Edison 12% 

Alin — 24% 

Amark.- 177j 

Aneck — 28% 


Std Oil GlITornlaj 38% 
std Oil Indiana...: 47% 

std on Ohio- ! 39 

Stanley Wk*. j 16% 

Stauffer Chem... 215® 
Sterling Drug—.. 21% 

Stevens (JP). I 15% 

Stoke I y Van K.- 32 
Storage Tech— I 34% 

Sun Co : 4170 

Sunbeam—. 1 27% 

Sundstrand 3970 

Superior Oil _ 32% 

Super Vei Strs— 18% 

syntex— „ 60% 

TRW 53 

Taft 30% 

Tampax — — 32% 


Avnal. 

Avon Prods 

Baker Inti 

Balt Gas A EL 
Ban cal Trlst ... 
Bangor Punta. 
Bank America. 
Bank of N.Y.- 
Banke 
Barry 
Bausc 
Baxtl 


.< 45% 1 45% 
* 29 7a 29% 
.1 35 | 35% 

.• 23% 235a 

. 2fl % 27% 

18% 1B5 4 

19% 197a 

.' 417 8 
325b 
167a 
51 I 


Easco.. 

Eastern Airlines.! 
Eastern Gas ft F. 
Eastman Kodak.' 

Eaton.. 

Eehlln Mfg 

Eckherd Jack : 

Electronic Data..; 
Elect Memories.) 

El Paso -i 

Emerson Elect— : 

Emery Air Fgt j 

Emhart j 

Engelhard Corpj 


ntl. Flavours 1 

rtL Harvester ...i 
tL Income Prop . i 

it Paper.. : 

it Rectifier 

it Tel ft Tel.— 

nring Bank- < 

am ex (Fg). 

offn-PIlot ,.! 

ewel Coe. : 

Im Walter j 

oh neon Contr— . 
ohnson ftJns—i 
oh n than Logan. 

oy Mnf. ' 

: Mart • 

aimer Alum ] 

alser Steel— 


Autboard Marine; 19% 

AveraeasShlp : 15% 

Awens-Cornlng..- 217 b 
> wens-Hlinofs_...i 28% 

»HH Group 22 

’PG Inds. - 36% 

*abst Brewing —1 14% 
•ac. Gas ft Elect 20% 

*ac. Ughtihg | 26% 

•ac. Lumber. \ 23% 


•ac. Tel ft Tel 

'aim Beach 

'an Am Air 

•art. Hand Pipe.. 
*arker Drilling.. 

’arkerHanfn 

>eabody Inti 

*enn Central 

■annoy (JO 

'ennxoil 


. 197b 197b 

. 25% \ 25 
. 27 B 27a 

. 33% 337 b 

. lBfifl 18% 
. 20% 21 
65b 65g 

. 39% 39 

. 29 29 

. 43 44 % 


Tandy...-- I 35% 

Teledyne 134% 

Tektronix 55% 

Tenneeo-..— I 31% 

Tesora Pet I 21 

Texaco - l 32% 

Texas Comm. Bit 39% 
Texas Eastern....! 53 
Texas Gas Trn.—I 35% 
Texas Instr'm'ts.; 76% 
Texas Oil ft Gas..- 33% 
Texas Utilities....! 19% 

Textron : 27% 

Thermo Electro-: 21% 
Thomas Betts—..] 56 

Tidewater— 1 37% 

Tiger Inti ! 13% 

Time Inc. : *37% 

T mei Mirror 4 46 


STOCKS ON WaU Street mainly 
reverted to a downward course 
in active early dealings yesterday. 

Analysts said market euphoria 
over the resolution of the t'.S. 
Justice Department cases against 
both ATT and IBM was more 
than offset' by extreme Bond 
market weakness yesterday and 
fears that the Federal Reserve 
would have to lighten monetary, 
policy. 

Neither ’ATT nor IBM opened 
for trading yesterday morning, 
although both are . indicated 
higher. 

The Dow Jones Industrial 
Average, after recovering 4.75 
last Friday, had fallen 7.23 to 
859.30 by 1 pm. The NYSE AH 
Common Index weakened 78 
omits to S6S-58 and declines out- 
scored rises in the ratio of two- 
to-one. Trading volume increased 
to 35.35m shares from Friday's 
30.97m. 

Anting the actives, Mitel lost 
li to j|2U, S3 Faso SI to S26I, 
Sohio 1} to S37£ and Northwest 
Air $1 on S25. 

Teledyne, despite reporting 
higher ofurtSh^ffuarter earnings, 
dropped 3i to S131}. 

Med com rose to S29 bid. S33 
offered from Friday’s closing 
S17} bid, S21 offered. The stock 
had gained 4i points on Friday. 
Baxter Travenol, which has 
agred to buy Med coni for S35 
per share, eased 1 to S33j. 

Tri-Chem advanced to SU£ 
bid, Sill offered from 89 bid. 
S9| offered. The company said 
it is tendering for op to 500,000 
of Its shares at $12 each. 

THE AMERICAN SE Market 
Value Index fell 6.01 to 30481 at 
1 pm. Volume 3.11m shares 
(2.95m). 


Harry Xerlich, with Merrill 
Lynch Royal Securities, said the 
market's weakness can be 
blamed on fears that interest 
rates are moving up. He said a 
number of companies have raised 
their mortgage rates. 


Tokyo 


Canada 


Markets in Canada also showed 
renewed weakness yesterday 
morning after rallying a little on 
Friday. The Toronto Composite 
Index dipped 8.1 to 14*84.6 at 
noon in moderate trading, while 
Golds lost 95 to 2,628.9 and Oil 
and Gas 29.8 to 3.51L7. 


After further declining in 
Saturday’s half-day session, the 
market dosed with a finn bias 
yesterday -following late scattered 
bargain hunting in Blue Chips 
and some other popular issues. 

The N!kkei*Dow Jones Aver- 
age, which was -26-36 lo wer on 
Saturday, rose 39.40 to 7,675.26. 
The Tokyo SE index, L64 easier 
on Saturday, put on 2.47 to 
565.80, although rises only nar- 
rowly exceeded falls on the 
First Market by 295 to 267. Also, 
volume was thin, amounting to 
17Gm shares compared with 
290m last Friday. 

Motors, . Light Electricals, 
Precision Instruments, Com- 
munications and Heavy Electric 
Machines were bought towards 
the close, after opening mixed 
on further liquidation of margin 
positions. 

A number of specolatives 
were also higher, but Steels 
declined, reflecting the ■ tem- 
porary suspension of the UJ5. 
trigger system on steel imports. 
Nippon Steel shed Y2 to Y169 
and Nippon Kokan Y3 to Y167. 

Among the brightest, spots. 
Victor Japan advanced Y140 to 
Y2.770, Sony Y100 to Y3£60, 
Matsushita Electric Y£0 to 
Y1.140, FqJ! Photo Y50 to 
YL290, Canon Y30 to YS90, 
Hitachi Y5 to Y65S, Nippon 
Electric Y19 to YS09, . Toyota 
Motor Y23 to Y99S, Nissan Motor 
Y24 to Y834, Honda Motor Y17 
to Y795 and TDK Electronic 
Y200 to Y3.700. . 


Dresdner DM I to . DJff 134. 
while Stores had Horten up 
DM L50 at DM. 111.50 and 
Kars tad t DM 2 firmer at DM 185. 

Public Authority Bonds recor- 
ded falls ranging to 40 pfennigs 
but some gains- of up to 15 
pfennigs. • The Bundesbank 
bought DM ,28m of paper after 
selling DM 21m on Friday. The 
market was depressed by con- 
tinued debt offeri ngs by the 
Federal Government and other 
public authorities im the form 
of Sdhukischem Promissory 
Notes: Similar, issuing activity 
acted as a brake on the market 
for most of last week. ' . 


Pam 


Following the good perform- 
ance daring the past week. 
Bourse prices were firmer for 
choice yesterday in moderate 
activity, with shares in tine for 
nationalisation still in demand. 

Among Banks, Paribas put on 
FFr IS to FFr 209 and CCF 
FFr 1 to FFr 157. 

Other firm sectors included 
Portfolios, Foods, Motors, where 
Peugeot row FFr 2.8 to 
FFr 179.3, Stores Electricals and 
Metals. 


Sentiment was Iwhded by re- 
marks about Hong Kong from 
British deputy foreign secretary 
Humphrey Atkins after his visit 
to China. He said the Chinese 
Government is aware of the 
economic - importance of Bong 
Kong although ft has not formu- 
lated any decision oa itfrfuture/ 

There was another moderate 
turnover, totalling HK3246.06m 
on the lour exchanges, against 
last Friday’s HKS242.64m. 

Fresh institutional buying 
was noted, with some Utilities 
also attractins speculative 
demand. 

Among Utilities; China Lf£rt 
rose 60 cents to H KSI4.2 0. HK 
Electric 20 cents to HKS5.90 and 
HK Gas 25 rants to HKS32. but 
HK Telephone receded 50 cents . 
to HK$^9.S0’ 


Australia 


Switzerland 


Germany 



Ennrch 

Envirotoch 

Esmark 

Ethyl ...» 

Evans Prods. 1 

Ex Cell 0— | 

Exxon I 

FMC— - I 

Faborgo — J 

Fodders 

Federal Co....:.... 
Federal-Mogul— 
Fed. Nat. Mort. .. 
3 % 1 Fed. Paper Brd... 
34s, I Fed. Resources... 
52% l Fed. Dap. Stores. 

’ 1 Fleldcrest MI. 

Firestone 

let Bank System 
1st Charter Fin... 


23% 1 23% 
16% 1530 

51 50 

237b 237( 

17% 17 

23% 23 

30% 30% 

26 24% 

16% 15% 

4 4% 

217 b 2130 

22% 22% 
8% 820 
27% 27% 

.1% I6g 

36% 35% 

24% 23% 

12 % 12 % 
34% 34% 
11 11 % 


7% 7Tb 
36% 86 

261b 25 64 

197 8 19% 

17% 16% 


Timken j 64% 

Tipperary.. .... 25% 

Tonka 30% 

Total Pet 13% 

Trane 25Ss 

Transom erica— 21% 

Transway- 22% 

Trane World— 14% 

Travelers-. 44% 

Tri central -86s 


Closing prices for North 
America were not available 
for flifo edition. 


Mirroring a weak erto dined 
Domestic Bond market, shares 
tended to drift easier in quick 
trading. However, Banks and 
some Stores provided firm 
exceptions. 

Among Banks. Deutsche 
climbed DM 4 to DM 269.50 and 


Stocks continued to gain 
ground in increasing volume,' 
helped partly by : one major 
bank's buying on account of 
foreign investors, but also by 
growing sentiment among Swiss 
buyers that the market could be 
ripe for a good rally. He Swiss 
Bank Corporation Industrials 
Index rose 2^ to 263 J. 

Market expectations that wall 
Street would show a firm, trend 
yesterday after the settlement of 
the U.S. Justice Department's 
disputes with American Tele- 
phone and- Telegraph and Inter- 
national Business Machines gave 
Swiss shares an additional 
stimulus, dealers added. 


Following last week’s weak, 
ness, markets were inclined to 
ease afresh yesterday. However, 
a few Mining heavyweights 
picked up a little, and the over- 
all All Ordinaries index recorded 
just a modest decline at jL 7 at 
575.3. 

Overall market leader BHP 
retreated S' cents to A59.90, ' 
while Industrials had Bond- * 
Holdings down 15 cents at 
A82.45 and -lCf Australia off 
5 rants at A51-75, but. CSR 
firmed 3 cents to AS3.78. • 

In the Oil and Gas group, - 
which declined 3.7 to 651.9 -on. * 
the index, Santos lost 6 emits 
to AS6.44, Yam gas 10 cents to ‘ 
A$10.ft0 and Alliance 011 2 cents' 
toASl-62. 

. Among Gold Minings, Central 
Norseman dipped 16 cents to 
A$fi.54, but elsewhere in Min- 
ings, Pan continental firmed 5 
cents to AS2.40. Western Mining 
5 cents to. AS3.90 and SUM 3 .. 
cents to AS3.0S- 


Johaimesburg 


Hong Kong 


After holding fairly steady for 
most of the day, the market 
staged a late improvement to 
leave the Hang Seng index 20.78 
ahead at 1,436.57. 


Gold shades lost ground fn the 1 
wake of the falling Bullion price. 
Among Heavyweights, Buffets- 
fonteln declined R2 to R41, but . 
FS Gednld hardened 50 cents, to f 
R38.50 against the trend. 


Trl Continental-. 20% 
Triton Enaray-_. 16 

Tylw._. 23 

UAI — 17 

12 % 
61% 
40% 
49 


1st Chicago— ] 19% 

1st Oty Bank Taxi 32% 
1st Interstate..,.. 3% 


1st Mississippi ... 1470 
1st Nat Boston... 43% 

18% 1 185a Jlst Penn 3% 

F lions a % 

Fleetwood Ent.J 12 


Flexi-Van 187 b 

Florida Pwr ft L. 28% ■ 

Ford Motor. 18% 

Foremost Mck— 37% 
Foster Wheeler- 14% 
Freeport McM..„ 33% 

Fruehauf 19% 

GAF 147 B 

GATX 309a 


Ganna*.— „ 

Gel CO 

Gen Am Invest ... 

Gen Cinema. 

Gen Dynamics ... 
Gen Electrlc.....-i 

Gen Foods. 

Gen Instrument.! 
Gen Mills...,....-. 

Gen Motors 

Gan Portland 
Gen Pub Utilities 

Gan Signal 

Gen Telep Elec.- 

Gen Tire -I 

Genesco. 


Cincinnati Mil,....! 

Citicorp • 

Cities Service-,.. 

City Invest ' 

Clark Equipment! 
Cleve Cliffs Iran. 

Coro x 

Cluett Peaby...... 

Co cal Cola. 

Colgate Palm 

Collins Alkman— 
Colt Inds. 1 


24% 1 25% 
24% I 24% 
41% I 41% 


23 217 B 

27 27% 


30% 30% 

11 % 11 % 


147s 14% 

367a 35% 


16% 16% 
11 % 11 % 


28% 53 


Genuine Parts— 

Georgia Pac.. 

Geosource 

Garbes Prod 

Getty Oil 

Glddings Lewis... 

Gillette 

Global Marine— 

Goodrich IBF) 

Goodyear Tire — 

Gould - 

Grace,- 

Grainger (WW)— 



BELGIUM (continued) 


Price + er 
Fra. — 


JAPAN (continued) 

: Price I + oe 
• Jan. 11 i Yen ‘ -- 


39ia 

697b 

287b 

38% 

11 % 

11 % 

11 % [ : 

lira 


1450 

1 14% 

26% 1 

1 26% 


11 % 1 - 1 % 


Indices 

NEW YORK — DOWdONES 


1 Jan. Jan. Jan. Jan. Jan. Dec. 


1981^2 [Since Cmpll'fn 


High Low 


H'me Buds. 



r 

824 J1 ' 
(26/8) 

1061.70 41^2 
tn/)/m(2/7/55) 

64.89 J 
/1/ID) | 
556.48 I 
126/8) J 
101.28 

447 M 
¥16/4/871 
185.52 

12.25 

(8/7/52) 
l MU! 

■(tt/9) 

(20/4/BSH2B/4/4Z) 

1 


AUSTRALIA 
All Ord. (1/U20) 

Metal ft Mines (HUSO) 


Jan. 

8 

Jan. 

7 

677.0 
407 A 

685.1 | 
413 J) 1 


AUSTRIA 

Credit Aktlen I2/U68) 


Ind. dlv. yield % 


Dec. 31 [ Dec. 24 | Dec. 18 -| Year ago (approx 


6.32 I 



nJA (614) 
m>2 (7/1/91) 


B46j (zantn 
404.6 (20/11) 


Shell can OH 1B% 

Steel of Can A.-.! 30% 


M^S (6/1/81) j 66.64 (TZ| IB) 


8W | 8ft2B ] SMB mm 68JS (16/6) 


11BJ0| 125.68 (17/12) 9SJU (2/1/81) 


STANDARD AND POORS 


T12-6 (17/51 
M4J) (11/1/82) 


77.1 (16/B) 
B7J (4/1/82) 


TeckB. 

Texaco Canada.. 
Thomson News A 
Toronto Dorn Bk. 
TransOan Pipe ... 
TransMntn.OIIA 
Utd. Slaoo Mines 
Walker (HV Res-. 
Westeoat Trans- 
Weston (Geo) 


. I , I , t , I , « 1981-32 [Since Cmpirt'n 

Jan. i Jan. I Jan. I Jan. Jan. Dec. u 

5 4 31 High Low High Low 


GERMANY 
FAE-Aktien (61/12/68) 
Commerz ban k(0 ec 186!) 


2(8.47 (8/7) 
749.B (! 17) 


216J8 (9/2) 
6B6.4 (16/S/ 


Ind. dlv. yield % 


ind. PIE Ratio 


Long Gov. Bond yield 


Jan- 6 

Dec. 30 

Dee. J83 

5.50 

5J35 

5.35 - 

8.04 . 

8.26. 

8J64 

14.15 

13.71 

13.60 


NY. &.£ ALL COMMON 


MONTREAL 


Industrials 

Combined 


Frldix Stocks Closing 

traded price 
Gon Rub Udts 1,156,300 6% 

Warasr Comtns 793,500 55% 
EJ Paso Co ... 666.900 27% 

Exxon - - 538,000 30*, 

.Cons Foods ... 520.800 30 



1981 -82 — 

Jan. Jan. Jan. Jan. I . tauea traded-. 1,866 1.875 1^94 

8 7 6 5 High Low R«eS™-. 904 654- 475 

— -T— Falla. 859 788 1,040 

69^6.69 J3269. 18 69.72 79.14 84,96 Unchanged 403 433 379 

III (B/T) (2B/B) New Highs-.-.- - 6 6 

New Lows — 40 48 



TORONTO Compos! tellMUL7 |X # BS7.o!l 9D9.7|lfllU I 2576.8 (10/4) 


NEW YORK ACTIVE STOCKS 

Change 


Change 

Stacks Closing on 
.traded prl« day 
Eastman Kodak' 499,900 73% :+l% 
General Motor* 438.100 40% + T. 

Tandy ......... 421.500 35% + 7, 

ITT ... 337.000 30% H-fa 

Sears Roebuck 387.00Q 17 ^ !+, £ 


(*■“) Sat Jan 9+. Japan Dow 7,635.88 TSE 563 J3. 




!Bfl/BT) 

ARBED 

Bang Int A Lux.- 

(17/11) 

Bekaert B_ 

Ciment CBR_....» 
Cockeriil 

C8I8) 

EBES 

Eleetrobel — ... 

Petals — 

Fabripue Nat,..— 

G.B. inno 

GBL (BruxL) 


IG 

Kaufhof- i 

KHD— 

VVI 

b _w 

Woeckner 


iCnipp-.... 

■ihde...— 

— 

Lufthansa 


f 4 

Mannesmann — . 

Manadiu ui- 


4* 1 Wft ml wwiiiwir-wi wuiiuoig ana rwu ■“* ig|Uiiu^-J f UUU; XHO 

hst nain*d Umo an t Excluding bonds, i 400 industrials. $ 400 


IIBIIIBH “WW MU 'lyjj, | CALLUQin^ UVIMB. T II S'J IXSITJ |S, 4 4W 

Industrials plus 40 JMhles, 40 ^nancials ?«d 20. Transports, c Closed. 
» Unavailable, 







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‘.t&b.'r.a, s :*---' . J. 




COMMODITIES AND AGRICULTURE 






ita^ptession 


_by ROY ,iiops6lj^; ; ^;:^; ; ■ 

stocks 

recession ..jh. .;bwfe\aMtete'. is. 
d eepevdng. “Wealaiessj it demand 

for ibe <^»nabeJy4i^'' liidiHh 
trial ; medals . , ffipougboqf -■. toe 
wejtehi world.is jbei^'jefiecA^ 
ia :tbe iigb atock^ : nw.. being 
carried - in* .tte . 'jn^taJs.” waren 
houses. \ -;■-£... /'■[. 

Stocks. ’ of ' rttost’ -d^ tbe : i»se 
metals held in the London. 
Metal Exchange, wrebouses rose 
once again during toe pest week.. 
Aluminium. stocks have' now 
reached iJeveti- -^ tnadfers . and. 
aluminium. producers' would not: 
have beUetfed possible when' the 
London market. opened three 
years ago. -■ • 

" At the beginning of the week', 
die LME' • aluminium stocks 
stood at a record. 155;600 tonnes 
— worth about £J0Cm at current 
prices, _By the end of the week 
the stocks had risen by afurtoeir 
4,300 tonnes. .. 

Helped by -the falling pound 
cash aluminium put- cox £1.5 n 
tonne on the-LME yesterday. to 
dose 'at . £577. But toe market 
remains acutely coxsuious of 
world producer- stocks -of unsold 
metjal wiiich iiow exceeds 3m 
tonnes. ; 


Copper •" stocks _*lso nose 
appreciably last . weak, adding 
L075 tdhne^ to 12^82^. tonnes. 
Copper was also helped by the 
: wealC:pojind -.in'- London, trading 
yesteiday jM-.put on’ £2 -to close 
.at.iS50.50 1 fpr cash.: ’_ - '. ;. 

The . Philippines ' government 
yestmiay disclosed jafazzs for. a 
copper stabilisation fund With 
an initial capital of : 200m. pesos 
to help toe couistryis copper 
industry through’ periods of 
depressed prices-? Local com- 
- paines will be charged.' 12 per 
. cent a year fotr.ustog- tim fund 
and will . be ;c(ah]pitted' to 
replenishing ... it when copper 
prices are higtL- Cmly copper 
producers which areoonsidered 
to have a lohg4»nii- fiitiixe on. 

the 'basis <rf reserves and pro- 
duction costs wall be entitled to 
assistance from the fund. Pro- 
. duoers of Philippines copper— 
ah : important- export ‘earner^ 
have been complaining to their 
government about toe low world 
price for, thteif, product . 

Lead stoeks in LME ware- 
houses' nne • by - 3,475 : tonnes 
last week to 32,950 tonnes; Lead 
closed ak £322.50 for cash in 
Londottr-a fall of £2.50 on the 
day— influenced ' ' mostly' -by 


Asarco . of the. JJi$ ciittfeg its.\ 
lea4 producer price' by 2.cent$« 
At .28 cents a .pound the 
Asarco price stands at a lower 
point than for many, years. ' 

Nickel gained £55 in London 
yesterday to close at £2.955 for , 
cash- mainly because of the 
Influence of currency factors. 

’Other LME stock movements 
last week: tin rose 45 tonnes to 
; 16,290 tonnes; zinc stocks fell by 
700 tonnes to 73,125 tonnes, 
nickel stocks fell' by 54 tonnes 
to 2,688 tonnes, and silver 
stocks rose by 250,000 onnces.to 
32,480.000 ounces. 

Mexico expects to increase 
Its silver -production to 70m 
ounces a year by- the end of next 
year from the current level of 
50m ounces a year, Reuter 
reports from Mexico City. 

The increase will come 
largely from the ' Real de los 
Anghles mine which will pro- 
duce about 7m ounces a year 
when fully operational later 
this . year. A statement from 
the national resources and 
industrial development ministzy 
said the expansion of silver 
production in Mexico was 
assured in spite of the. low 
world price at present. 


Plan to shift Jamaican refinery 
Ghana eocaa strike contained 

\je. . ' w'y : BY CANUTE JAMES IN KINGSTON 

UliJvllN^U 1 . THE- JAMAICAN government place one wl 


ACCRA • Ghana’s . Provi- 
sional National Defence. Cowh 
cil called, an emergency meet, 
ing yesterday to discuss, the 
evacuation_-j>f cocoa ' from the 
hinterland 7 q ports. , 
Senior, government officials 
were told to attend together 
with members of the Cocoa. 
Marketing 1 Board. •; - 

Last week Ghana's new mili- 
tary ruler. Flight Lieutenant 
Jerry Rawlings announced that 
students from the country’s 
three universities would sus- 
pend their studies: to, take part 
in the evacuation and? help on 
farms. y.K-~', 1 : 

FlL-Lt Rawlings said the 
•whole country was being' mobi- 
lised f or: the -exercise, ' 

The main .trunk, road from 
Accra to the north is reported 
to be loverflowius with bags of. 
sealed . and ; graded -cocoa await- 
ing transport- to ports. ' • ; 


THE- ■ JAMAICAN government 
has managed ‘ to prevent the 
spread - of a- strike which has 
threatened , to . Close all. the 
North American-owned bauxite 
ntihig and "refining operations 
in . the - island. -• ■ However, a 
550,000-tonne refinery in. Central 
Jamaica,, owned .by the Alu- 
miniura Company /of America 
- (ALCOA) 'remains . closed, . 

. Some workers, at the island’s 
largest refinery, • owned by 
Kaiser,- Reynolds and Anaconda, 
went on strike late, last week, 
raising ' the: prospect , of. the 
plant's closure. However, the 
Government intervened and the 
workers returned -to their jobs. 

Negotiations are' expected to 
confine eariy. this week aimed 
at finding an agreement which 
.will allow the re-opening of the 
Alcoa refinery.. -The workers in 
the- industry are - disgruntled, at 
the -lack of, agreement between 
th& companies and their unions 
on: a new Wage contract to re- 


place one which expired at the 
-end of January last year. . 

Pakistan - 
cotton sales 
down 

KARACHI — Pakistan is find- 
ing difficulty, in selling its 
cotton this year because its' 
traditional customers have met 
their requirements from other 
producers; the Karachi Cotton 
Association said. 

It said- Pakistan was negotiat- 
ing.with a number of countries 
but no' big* deals were reported.. 
China' . is - negotiating with 
Pakistani officials for a possible 
purchase of 7(KM)00 bales. ’ , 
Pakistani cotton output this 
year is forecast at 4.6m bales 
compared to 4^m last year. 
Reuter ! 


Chicago 
exchange 
sets record 


CHICAGO — Trading volume on 
toe - Chicago Board of Trade 
(CBOT). during 1981 was a 
record 49.1m contracts, up from 
43.3m . in :i980,\ CBOT’ an- 

nounced,- 

It ^was toe 12th consecutive 
record, year' and ' the 14 ih 
straight annual . volume in? 
crease, . 

Open interest, however, 
drofmed, to 689,520 contracts in 
all couunodities at the end of 
December 1981 from -1.0S2.284 
at. toe end of December 1980. 
And volume .during December 
1981 was 4.378,756 contracts, off 
from 5,188,363 in .December, 
1980. . 

. A lf4 per cent increase in 
volume erf U.S. Treasury bond 
futures, to 13 Am contracts from 
6.5m in 1980, led CBOT to its 
new annual record. It was lhp 
fourth new yearly high- for 
T-bonds' since trade began in 
1977.- 

Activity in financial instru- 
ment . contracts in 19S1 
amounted to one-third of all 
CBOT contract volume, com- 
pared with one-fifth ih 1980* 

• Agricultural futures volume 
was down more than one-tenth 
in 1981 at 32.1m contracts, with 
only oats showing increased 
•volume, to 370,103 contracts 
from 320.934 In 1980. 

Reuter. 


Saudi aid 
for fertiliser 
plant ; 

DACCA — The Saudi Fund for 
Development . will provide 
Bangladesh, with $85m for a 
! urea fertiliser plant In the 
' southern port, city of Chilta- 
j.gong. • • ■ 

I The official Bangladesh -sews 
{ agency BSS said a fund delega- 
i tion was to arrive here .today 
I for a three-day visit during 
.; which a formal agreement on 
i the assistance will be signed. 

] Under 1977 and 1978 agree- 
j mentis between toe two sides the 
j-fund pledged to provide Bangja- 
| desh with project assistance 

• worth $3D0m and the aid for 

• the Chittagong Urea Plant will 
■ be a part of that assistance. 

! Reuter 


Freeze threatens UK farm production 


BY JOHN CH ERRING TON, AGRICULTURE CORRESPONDENT 

THE PRESENT arctic weather A. 

fallowed -is week’s thaw, in the 

: south of England which raised; iJUvI IMji 
farmers' hopes that : toey had ! - 

seen the worst. The grass CONTINUING arctic weather 
seemed greener and toe autumn- util cost Britain’s farmers ’ 
sown wheat and barley began- to milllohs of pounds and leave 
grow quite strongly. Since Fri-. consntoere facing shortages 
: day, though, it has all been very and .high, -prices for many 

unpleasant. months. . 

The' snow' followed a hard With snow’drifts still cover- 
frost andithis allowed it to blow ing the math sheep producing - 

Off the fields and drift into the areas, there are also fears ' 

roads, which were blocked in that many lambs will be still 
no time. Ill Hampshire we did born or die from the cold ' 
not suffer the extremes of soon after birth. 

Wales and toe West of England -The lambing season is . 

where the snowfall was much already underway In parts of 

heavier, i Power lines are for ibe south and many flocks, on 
the moment still standing. Sup- the hills are eat off beraiise 
plies are reaching farms, and of the snow.' 
milk is being collected. Some fanners say they are . 

The main effect has been that faring bankruptcy because of 
every job on the farm Is taking the winter conditions. Hun-, 
twite as long and the very hard dreds of thousands of pounds 

frosts are freezing water sup- worth of hay and straw have 

pi i/5 which were considered , been lost in water logged 

protected. barns and many square miles 

There is' plenty of fodder and of land are covered by flood 
the animals most at risk, the . water and Ice, leaving crops-- 
breeding ewes on the lowland cutting in the ground, 
farms, should be able to survive Milk production been 
as long as there is enough hay seriously hit with bulk tankers 

and' other feed. Very few wur unable to get through to 

be lambing for three nr four 

wppIv*? vpt 

On toe hills and moors, par- ^owse. Even if hay and other 
ticularly-m Wales, conditions’ f ced is available, the difficulties 
could be very serious. Mount of getting ffceni to the stock are 
tain sheep are usually left to, extreme- in this really- deep 
get their own living from the snow - 

vegetation and even if they In Wales, too, farmers are 
have not heeti buried, they having difficulty in having their 
would find little, on which to milk • collected and in many 


farms In some areas. 

Farmers are taking their 
milk by ■ whatever means 
’possible to central collection 
points in ' toe ' hope that ■■ 
tankers can get through. 

Many livestock farmers 
took animals indoors mneh 
earlier than usual, but flow 
there are fears that winter 
feed stoeks will run short. 

Intensive producers, especi- 
ally poultry and pig fanners 
have also been hit They need 
animal feed deliveries every 
two or three days and blocked 
roads - have made this im- 
possible; Huge areas of sugar 
; beet and winter cereals have 
been lost and wfll have to be 
reseeded, delaying the har- ' 
vest. 

The National Farmers 
Union warned that supplies 
of some home-grown vege- 
tables could dry np this week 
and the shortage run until . 
eariy summer. Extra healing 
costs will force np (he price 
of greenhouse crops. 

cases have not .the power with 
which to chill their milk storage 
tanks. 

Further north the floods in 
Yorkshire have been checked by 
the frost but not before they 
could have done a great deal 
of damage to the autumn sown 


Cotton outlook remains dim 


BRITISH COMMODITY MARKETS 

T* a Q 1 ? HyfETiT e. .V - . 37 X 0 . 3750 . 3630 . 32 . 00 , . 36 . 00 . 35 
DAMj IVIJLI /YJLO 38 . 00 . Korb: Thre* mwiiha £338 


. BASE-METAL PRICES oh- the .London 
Metal Exchange were . generally sus- 
tained by the -sharp fall m stmUna: 
agai nst the dollar. COPPBf cloiod- st 
£880.5, owing to Currency conw dera- 
tions. LEAD touched. E331 prior, to 
closing st £332.5 on.' new* tfr|t Asarco 
has cut its producer orice by -2 cents 
to 28 cente— the lowest level far a 
number of years. ZINC was finally £437. 
amid rumours that unofficial talks :are 
in progress rm gardjn fr the Tara strtfce- 
TIN closed at E7970. following demand 
for cash metal; while ’.ALUMINIUM 
ended at £6025 despite the sizeable 
stocks Increase. NICKEL rose T© £3037.5 
owing tb; -the stocks ' dart*"*- «nd 
currency factors. 


. . e-m. i + oif; P-m- J+, ** 
COPPER ; Official | — 'OnofTHdal — 

' ~I £ . •! C i ~ * 

3 mths 874-5 h- 7 .: 877.*« •*«.».- 
Settfam *! • B4-7J .+0. ; — j — - 

3 months 1 870^-1 - 1 B7LM.6r*.7S 

Sattlem't 8«.5 +S.B „_rl . 

S. Prod I - _i^.— < J r=r 

AmalgsmaTad Maul Trading is ported 
that in the morning ' -cash wirebara 
traded at LB47-D0, three months £871X0, 
72.00, 7250, 73.00, 7^50.' 74.00, 75:00,- 
-74^0. 74.00. Standard Cathodes: Three 
months £870.50. Iferbi Higher gnda.- 
three months £874.00, . 73.00, 72.00, 

71.50, 71.00. 70.50, 70.00. Alwnowu 
Hi a her grade, three months £876.00. 

75.50. 78.00. 78.50, 77.00. 7750. 78.00. 
Kerb: Hlgbar grade, three rnonths 
£878.00, 77.50. 78. DO,- 73.00, . 80.00. 
Turnover 16575 tonnes. 

“ i. e.m. ;+ or' - pjn. l+wr. 

LEAD } OTTlciel j — Unoffldel ~ 

'• A ' t-e^l " - £ • « 

Cash ™J382.75-3 ;-1F.T; 328-3 -W , 
3 months: 335.5-6 j— 13 , 3 

Settlemti ' 323 -. lT 15 * 5 ' ’ — 

U.S. SPQt - 

- Lead— Morning., cash .£322.75. three 
months £338.00. --38. 00, 38.00. 37JSO. 


.37X0. 37 SO. 3630. 32.00, 36 00. 35X0. 

36.00. .-.Kerb: Three momhe £336.00. 

35.00. 34.00; 33.00. Alter noon: Three 
months £335.00, 35S0. 37.00. 36.D0. 

35.50. 38:00. 36.50. 36.00. 35.00. Kerb: 
Thra* months £334.00. 32100. 31.00. 
3Z.00. 33.00. .34. DO, 33J30- 32.00. 31.00. 

31.50. 32.00. 32-50. 33.00. Turnover. 
14.975: tonne*- .... 

— -^T. aim. .+ or*- p.m . f+ o 

. -T1K .' OffleWr— Unofficial 1 , — 


High Grade « , £ f * ' « 

Cash 642040+0' I -642040 (+4B - 
3 month* 795Q:M +S7^ 794060 -20 
Sottlemt 6440 .422 ‘ — 

Standard . . • j • 

Cash 842040+85 842040 f+45 

3 months 7B50-60+S7> 7940-50 t-SB 
settlamt 8440 -+9a — ; — 

StsattfrE^, 7*34^0-4.10 — . • 

HewYorW ‘ — : „;J - ' . 

Tln^Mofnlng: Standard- csfch £8370. 
6410. to. . three month* £7960. • SO. BO. 
Kerb; Standard. ' thro* months £7860. 

- 50„40. Afternoon: Standard, cash £8440. 
30, late- March. £7960, three months 
E7S30. 75, 80. 65. 50.. 40. 50. Kerb: 
Standard . ,. lat a .Match £8000. three 
months £7960. Turnover: 905 tonnes. 

TT: 7T^e-»ru r+- or7 - P^rnT ' ’~rf or 
. PHC ' Offlclai — • Uno fficial — 

a Hi. *•*.'' * : »• * 

.Cash 421J-2 -6.75 426-7 +1^ 

3 Wonthsj 435-JJ- -§• 1 437.56 +JS 
S < m*nt.Vj'42tf -7. ! — - • — 

Mniw'bd T- - , — ; * 42-75 ‘ _ 

.-ZJrio-^Mormhg: Three months £437.00, 
36.50. 36.00. 95.00. 36.00. 35.50. 35.00. 
Kerb: Th(es . months £435.50. 35.00. 
Afternoon: Three months £437.00, 38X0. 
38.5a- 38-00. -Kerb: Three months 
£437.00. Turnover: 6,975 tonnes. 


months . £600X0. 01 00. 02.00. C2S0. 
02.00. Kerb: Three months £602 00. 
03X0. Turnover: 5.450 tonne s. ^ 

NICKEL '■ a.m. .'+ or . p.m. + or 
Otfic'reJ — Unofficial — 


Spot- ! 2948-55 +57-5 2950 60 +55 

3 months 29954089 +45 3000-10 -r<3 

r . - ■ , 1 ■ 

t Op previous unofficial clgse 

* Cents per pound. fUS per kifo. 
Mckal — Morhng: Three months £296 5. 
70. 90. 3000. Kerb: Three months £3000 . 
2995. Afternoon: Early March £2980,- 
three months.' £2390. 3010. 05. Kerb: 
Mid Feb £3000, three months £3005. 
10. 15.- 10. 30. 40. Turnover: 788 tonnes. 
Hs1436.0tf«437.0D.,sbr »br -b/d hdunm 


SILVER 


Alutrirnm 

un. . 

.orpoiMi 

+«■ 

r: — n — 

p-m. rt-or 

UrrofTTofeli — 


/" x i8- 

' A 

ft 

.. .’ ft 

spot-.—, 
3 monthi 

S7<84Lfi 

600rl- 

+&! 

■ 676-8 
6Q8-J5 

;+ u 

:+S 


Silver v»as fixed 6p an ounce lower. 
for spot Salivary in the London bullion 
marker ' yesterday at 423p. U.S. cent 
equivalents' of the fixing levels were: 
spot 800.5c. down 21 A: three-month 
826.8c. down tlJcr. six-month 858 4c. 
down 22c; end 12-month 918c. down 
22.6c. The trietal opened et 426-430p 
(810-61 5c) and closed at 425-429p 
(806611c).. 

SILVER-' Bullion +or- UM.e +or 
per i fixing ' — o.m. ' — 
troy ox. \ priae ; . iUnofTte'1 

Spot «.^_*423.0b» — 6 A 423-DOp — « 
3 month* .438.40 b 5 A 440.75p -113 

8 morrths.455.40p ,-5J — 

ISmon tbs 487. 4 0* ^-5J — 

LME— Turnover 45 (67) lots of 

10,000 ounces. Morning: three months 
430.0, 36.1. 38.0. 35 3, 36.0. Kerb: 
437 J); 36:5 ' 38.0. Afternoon: three 
months 441.0, 42.00. 41JS0. 41.00. Kerb: 
three- month*. 440.15. 41i>, 42.0. 


Del 512.0. 513.3. un traded; Dec 5160. 
517.0. 516 0: March 522.0. S26 0. un- 
rraded: May 528.0, 529.0. untiadad: 

July 531.0. 532.0.- untraded. Sales: 15. 

GAS. OIL FUTURES 

■ Prices fell sharply alter the opening 
on the weakening of the physical pnee. 
A stronger New York opening pushed 
prices up briefly, reports Premier Man. 

Yesterdys + or Business 

- Mont n - close . — ' ; Done 

1 - lUJE- 

• : - per tonne 

January 324JX) ; -2 JD J26.25-II.M 

February 318.50 ^516.90-17.75 

March 309.00 -1.00 5 10. 7543 JU 

April 301.00 -1.50 $02.0046.50 

May 200.73 -Oto 5M.0049to 

June ’ 208.73 -2 JS 299.7VM.0fl 

July. 200.50 -1J6. 

August 302,50 +2.50, — 

Sept. .302.50, +2.50 — 

Turnover: 1,189 (1.330) lore of 100 
tonnes. 


NEW YORK— A large surplus 
o£ supply over demand, high 
U.S. interest rates, a strong 
dollar and a sluggish world 
economy together took a sharp 
toll of U.S. cotton prices during 
19Si. • ■ 

While 1982 may bring some 
respite from the steep decline of 
recent months, few market- 
watchers anticipate .a sharp 
rebound • : from . currently de- 
pressed • price levels. Fewer 
stiir expect any substantial 
recovery, nntil at least the 
second quarter of the year, and 
most suggest probably- later. 

Having begun 1981 at around 
95.00 cents a pound, the spot 
contract on the New York 
Cotton Exchange was hovering 
nearer 64.00c a pound as 1981 
came to a close. 

. A review of cotton produc- 
tion and demand estimates for 
toe 1981-82 season betrays much 
of toe reason behind the recent 


Quotations: Quality 117p • kg (117 p * 
kg). Medium 108p s kg (1C*9p a kg), 
plain 80 p a kg (79p a kg). 

SOYABEAN MEAL 

' The nutkei opened wah small gams 
in -sitfjdy trade, reports T. G. Rortrfrrk. 
Prices continued, to show fitmneaa on 
commission house buying. ^ 

’. ,Y*»terdy» + or. Business 
• , Close — j Done 

.per tonne 

February— 1 Ul.TO-aSJI +2JW 151.M-5D.IW 

April. :... 152.10 32.5 +1.00 15LM 51.80 

June 131.56 12.6 +0.18 152.10-5 1.M 

August......; 132.58-33.5 +1.25 1S2J8-JU6 

October -. 152.58*4.5 4 1.20 — 

Dec : IJ3J6-5B.5 +0.75 -- 

Feb —* 1SJ.50SB.B +U.25- — 

Sales; 425 J61) iota of 100 tonnes. 


price slump. 

Latest forecasts from the UE. 
Department of Agriculture put 
the 1981-82 U.S. cotton harvest 
at a bumper 15.57m bales (of 
480 lbs), as against only ll.lm 
last year, largely reflecting 
near-record yields. Ui». con- 
sumption, on toe other hand, is 
estimated at only 5.9m bales. 
Coupled with export projec- 
tions of ■ 7.0m bales and 
beginning-year stocks of 2.7m 
bales, the USDA forecasts trans- 
late into a carry-over in the U.S. 
of aroimd 5.5m bales into toe 
3982-S3 season. 

The global picture reflects 
the same pattern, in starker 
relief. USDA forecasts of a 
Ti.Om-bale world harvest in the 
current season will more than 
meet expected ' world demand 
of 66.5m bales, resulting in esti- 
mated world carryover stocks 
on August 1, 1982, of 26.8m 
hales. 


PRICE CHANGES 


In tonnes unless otherwise listed. 


As a result, “any improve- 
ment in prices will have to 
come as a result of dfeznand, 
and It will be sometime in the 
second quarter of 1982 before 
we seen an upturn in demand," 
according to Mr Dan T rosier, an 
economist with the r.S. 
producer-funded Cotton Inc. 
research group. 

In the absence of a crop 
disaster in producing countries, 
any resulting price increase will 
be gradual rather than sharp, 
Mr Tr osier adds. 

Any improvement in cotton 
demand from toe textile indus- 
try will come after a general 
recovery in the U.S. economy, 
argues Mr John Santley, execu- 
tive director of the International 
Cotton Advisory Committee 
(ICAC), an inter-governmental 
study group. 

But “that upturn is now not 
expected until the second half 
of 1932 at the earliest,” he adds. 


cereals and to potato and sugar 
beet stores unless these were 
above flood level. Although the' 
cold has been extreme in the 
north of England, there has not 
been quite so much snov* and 
farmers are generally more 

• prepared to meet such con- 
ditions. The bad weather started 
early and both in the north of 
England and Scotland they have 
coincided with the mating 
period of .the hill sheep with 
the near certainty of a reduction 
in fertility. 

In any case hill ewes are 
believed to absorb their embryo 
lambs in a bad time and lambing 
percentages ^ould well be down 
this spring.' Overall, the ewe 
flock and outlying- cattle are 
most at risk, but we are much 
better equipped with tractors 
to handle a crisis like -this than 
we were in 1963. 

A more serious contingency 
Is damage to the autumn sown 
grain crops. The first snows fell 
on Unfrozen ground and when 
toe frosts came toe snow 
protected the plants. This time 
it was already freezing and the 
drifting off the fields has meant 

* there is little protection. A 
severe frost like this can cause 
the soil surface to lift and 

■ literally tear the young plants 
apart. This happened in January 
1979 to some extent, and unless 
there is a thaw before long, 
preferably with rain to beat the 
soil surface down, losses from 
this cause could be veiy heavy 
almost anywhere. 


Russians 
fight to 
protect crops 

MOSCOW — Farmers in the 
Stavropol area, an important 
Russian winter grain area, are 
fighting to protect their crops 
against frost in the absence of 
snow cover. Tass News Agency 
said yesterday. 

J Tass said several days '.Into 
this month the weather iri the 
South Russian region of Stav- 
ropol was unseasonably .mild, 
grass was still green and there 
1 were even some flowers bloom- 
! ing. 

| When The first frosts arrived 
i snow cover was insufficient to 
I protect crops. Farmers were 
I hying straw and other 
] materials as protection, the 
agency said. 

! Reuter 


AMERICAN MARKETS 


SUGAR 


GRAINS 


COCOA 


fWUHIIUHMIl - IVIVIUI|l||l . I 

CSSS .00, 97.00, 96:00, 97.00. 98.00. 
99.00. . 60000. ‘ . Kerb: Three . months 
£599.00. 38,90. $B.OO,- , Afternoon: Three 


A NEW RANGE OF 

COMMODITY 

SERVICES 

ON THE REUTER MONITOR 


* Exchange prices, prices contributed byrnaikel 
makers, stafefic?,; news and foreign excaiange : . 
rates;— . . . 

METALS GRAINS/OiLSEEDS 

COCOA RUBBER 

COFFEE SUGAR PETROLEUM 

Ffar furttter delate please telepho ne John Roberts JnX^toT 
oriO t -251 7485 or contact fW M M 
your toed Reuter office. 

ttofid mark**— Or"*** 


Future* remained steady vr'crhoi s 
narrow - range. Acnieb business 
remains slow with, interest shown tor 
cocoa even though differentials, are 
weak, reports Gill and OuBut. 

[Yee'nUy' s+ or Businas* 

COCOA ! 'ROM . — , Done - 

• - 1 - m - 1 — ' - 

March Z] 1203-05 +TQ.5 1205-198 

May..., ' 120305 +12.5 7204-197 

July 1218-18 +16.0 12 19 -Oft 

Smot r 1224-25 -rl3_5 2224-18 

Da e ' _ 7232-35 +7.0 1234-51 

March.. 1240-45 >9.0 - 

May : 1845-55 +9.0 . . 

Sales: 3.2CB (1.794)- . lota o I 10 
tonnes. 

ICCO — Daily price lob Jan 11: ICO 23 
(100.54): Indicator pries for Jan 12: 
f 00.66 (700.40J; 'U.S. cents 'per pound. 


COFFEE 


The tnarfcet ooened generally higher: 
Shipper and commercial • selling on 
March end May wheat pushed the 
rest of the market back. Acli reports. 

WHEAT •" . AABLET 

.Yfestenfiy* +or Yeaterd’ya+or 
hlnth close 1 — close • — 

Jan_ 109.20 ’ -OJ5 104.85 -0.55 

M*r-. 112.35 — 0.65 107.MQ -0.56 

May.. X 16.00 -^O.M 111.20 -0.56 

July.. 119.00 -OJ55 - • - 

l*p... 107.30 ■— 0.1D 102.85 ; — 

Nov... 111.10 . -0.10 106.80 -+O.OS 

Business done — Wheat; Jan 10980- 
109 30. , March ; 113 .25-112.30. May 
116.85-116.00. July 119.80. only. Sept. 
107.70-107.50, Now 111.50 only. Sales: 
79 lots ol 100 - tonnes. Barley: • dan 
untraded. March 108.50-107.90. May 
771 90-111.70. Sept 102. 75-102.90. Wov 
107.00-106.80. Sales: 55 lota of 100 
tonnes. 

- LONDON GRAINS— Wheat: U.S. Darfc 
Northern Spring No. 2 14 pr ent Jan 
116.50, Feb 117.75, March 119.00 trana- 
shipment East Coast sells. English 
Feed lob 'Jan 113 paid South Coast. 
Maize; French 1st hall Jan 133.50 tran- 
shipment East Coast sellers. 8. African 
Yellow : Marfch 76.50 quoted. Barley: 
English Feed fob. AprH/Jtlna 116 paid 
Coast. Rest unquoted. 

HGCA^— LocatiojjaJ ex : farm spot 
-prices. Other milling whose E. Midi 
'131-30. -Feed ■ barley: Eastern 02.70, -E. 
Mid*. 04.00, N. East 04.80, Scotland 
t05to. The Uk Monetary Coefficient 
for the week beginning Monday 
January 2 (based on HGCA calculations 
osing 4 days exchange rates) la ex- 
pected to remain unchanged. 


LONDON DAILY PRICE— Raw sugar 
£100.00 (same) a tonne Cil Jan-Feb 
shipment- White sugar daily price 
£167.00 (same). 

The merkei drilled under light trade 
selling. This movement was reversed 
when New York opened steadier than 
expected winch encouraged London ro 
move forward, reports C. Curmkowl 

-Ho. 4 Yesterday Previous Business 
:Con- - close close - I done 
tract i I 

- - . _2 per tonne 

March. 171^0-7135 170.65-76.15T72.MB8.2S 
May—. 473. 75-75.65 175.Sfl-75.2S 174J&-7S.50 
Aug--. 176.75 76.50 176.Sfl-76.75 177.10 74JW 

Oot lU.50-llfl.50 I80.2S-aO.7SJ8O.BO-78.OQ 

Jan 10UHMCL50 180.50 61.75 - 

Marr.t. 166^5-66.50 165.50 86.00 186-59 
May.tT.t'IBT^S-W.SO-lU.M 5W6 ----• 

Salat: 2. 636 (2.540) lots of 50 

tonnes. 

Tath ' and ' Lyle' deliveiy price for 
granulated basis white auger wag 
£374.00 (same) a tonne fob for home 
Trade . and £269 50 . /same) .lor .export. 

International Sugar Agreement (U.S. 
cents per pound) lab and stowed 
Caribbean port*- .Prices .for. 8:. 
Daily price 12.72 (12.70); 15-day 

average 13.05 (13 07). 


Metals 

Aluminium 

Free Mkt — 

Ooppar..... 

Cash h grads.- 

3 mths 

Caen Cathode.. 

■ 3 mthe 

Gold • roy ox.... 
Lead Gash.... _ 

3 mths. 

Nickel 

Free mkt 

Pletln'mtr'y oz 

Freemkt 

Quicksilver) ... 
Silver troy oz... 

3 mths. 

Tin Cash 

3 mths..:. 

TungstenSS.Olb 


Jan. II +or.l Mqnth 
1982 — | ago 


!£B1Q/B16 £81D>815 

$1080/1110-10 S1 120/150 


‘£850.5 

■2877.75 

2845 

£871.75 

S38B 

£322.5 

£334.75 

£3737.73 

255,290c 


+2 £873. 

+ 325 £894.75 
+ 0.5 £869 
+0.75 £890.5 
-11.5 44 18.5 
-2.5 £367.25 
—3 £379^3 

£3976.60 

t 5 245/85e 


£260 

£194.20 — 
S4 12/4 18 — 
423.00/, - 
438.40/, - 
£8,430 .*■ 

£7,945 — 

4127.40 -... 


-£250 

4.1 £218.60 
2.5 $418/425 
467.75p 
5.8 484.1 5p 
45 £8460 
20 £e325 
S137.32 


W0tfrm22.S41bsS12V128 +0.5 S124M29 

Zino caefi- £426.5 -r 1 £440.5 

3 mths £437.75 ,+0.5ft£449.75 

Prod user a -..$950 5920.50 


Oils 

Coconut fPhlH.S547.5y 
Oroundnut.._. l ..$676y . 
Unseed Crude j 
Palm Malay an. 1 650 5x 


Copra Philip.... '834 5y 
SoyabaaniU.S.i $261.3 [-0.5 $262.5 

Grains ( ( 

•-BarteyFut.Martfl07.90 -0:60 £107.16 

Maize >£133.50 £130.25 

Wheat Fut.Mar>£l 12.35 —0.66 £111.60 

. No2 Harawmtl .. . : ; . 

Other 

commodities j 

Coooathlp’t* £1250 +11 £1,263 

Future May >£1204 + l&AJiim.B 

Correa Ft' Mar £1X38.5 l-O £1121.5 

Cotton A.1ndax:69.45r 67.200 

Oas OH Feb. _. v 83 Xa.fi i_ s3£2 

Rubber (KilO)...i50p 1+0.25 52.2 5p 

Sugar (ltaw/..„:i50y £170 

_Woaft'pi64* U.{378p klloi* 1 .. JtSpWIo 

t Unquoted, w Dac-Jan. z Feb. y Jan- 
Feb. fPar 7B-lb flask. • Ghana cocoa, 
n Nominal. 5 Satlar. 


i._ S36D 

I-U.6 »262.5 


COTTON 


A mixed close in New York together 
with sterling • weakness produced a 
marginally fewer opening, reports 
Draxel Sum ham Lambert. Continued 
decline in sterling attracted dealer 
buying. Fresh incentive from a steady 
‘C‘ market was restricted by profit- 
taking et the higher levels. 

Yesterday's 

COFFEE CR»e + or Business 

. ' — ■ — - — Done 

5 per t onne, 

j-n - Tl3^34 +6 jD 1132-28 

MerSt- 1158-39 +7JS. 1139-28 

StoCIJL 1127 38 +10.31127-18 

juS : 1122-23 -rI0.D1124-18. 

SaptL - ’ 1117.19 , + 10.01119-11 

New” :• 1112-W -i-8j0‘- 

Jap.mrV— :l _1101-2g ^8-0 < — 

Sales! 2^48 (2,880) 101*. of 5 tonnes. 

ICO indicator prises for January 8: 
(U.S. canu per pound}: .Comp daily 
121.95 024.89): 15-dsy average 123.76 
(123.73). 

WOOL FUTURES 

LONDON HEW ZEALAND CROSS-' 
BREDS— Close (>n order: buyer, seller, 
business). New Zealand k 9-’ 

jan 3«. 368. a !: *!r 

May 375, 377, £77-376: Asg 386. 389, 
39*388: Ort 393. 382. 391-390: Dec 
396^. 396-336; Jan 399. -01. 

March 409. *1 2. 4W; May 414, 418. 420. 

^SYDNEY GREASY WOOL — Dsss ( n 
order: buyer, sailer. baa-r.essj. Aus- 
tralian cents par k<3 Maira 437*. 
488 fl. 498.0, Mav 504.a 506.5. un- 
«ded; July t«.5. 574-5. 5lS.<W13.0: 


RUBBER 


The London physical market opened 
slightly steadier, attracted tittle 
interest throughout the day and closed 
quiet. Lewis and Peal . recorded a 
February fob price for No 1 RS in 
Kuala ' Lumpur ol 3)4,5 (203.5) cents a 
kg and SMR 20 180.5 (179.5)^ 

No. 1 YestVys Proviout Busin act 
R.S.S. ' close otoae Done 


FeO.._... 50JM7.M158.5O-S8J1J M.3B 

Mar. : 51.40-51 JO. SOJMl^O — _ 

Apt jne. 53^0-53.60 5J.Ba-5S.0fl. 55.48«to 
: JlyUept 1 U.M-56.71I 56JU-SB.20, 56.70-WA0 
Oct-Dec 59.70-59.B0 Mto-S9.30 BS.Bfl-5B.70 
Jin- Mar B2.BS-KJD 82.40-B2.5Q SS.X-B2.30 
ApWne. 1 85to«to SSto-e.« — . 

-Jly-Sept BB.M-fl9.Dfl filto-58.4fl. ~ 

Oct-Dec 7ZM72.1V 71to7L« ^2- M 

Sales: 115 (23) lou of 15 tonnes. 
10' (24)- lota of' S' tonner. * 

Physical dosing prices (buye/l) 
'were spots 50.C0p (49.75p), fab 52 OOp 
(51.75p), March 51 75p (51.50p). 

TEA AUCTION 

LONDON TEA AUCTION — 26.199 
packages were cn offer at yesterday's 
attebon. , A fair demand prevailed. 

■ Sol acted .brighter Assam aryf roosi 
dusts sold readily at fully firm to 
dearer rates, but mediums sometimes 
lost to i-ip. Africans met Strang com- 
petition at luliy firm to d»*rer rales, 
w th dusts strong. Cerions were baits 
well supported end were fully firm. 


— LIVERPOOL— Spot end - shipment- 
sales amounted to 375 tonnes _ fair 
offtake ’ took place with renewed 
■merest in Middle Eastern qualities. 
-Occasional -support came in African 
qua lilies. 

JUTE 

JUTEL-Feb c/and/f Dundea; BWC. 
£297; BWD CTid, EBTB Ei33. BTC £291. 
BTD £247. Amw«rp: c/and/f: BWC 
.5535, BV/D S42S, BTB S62S. BTC S547. 
BTD S442; Dundee Feb 40 in 10 OZ 
riO.OG. 40 in 7 1 / oz £7 BO: B/TW.IIs 
£29-46. . 

POTATOES 

LONDON POTATO POTUffES— Heavy 
frosts over the weekend moved April 
up io-£t1S.S0 in early -trade, but profit- 
taking and fresh selling p+red the 
'gains, ' reports Coley and Harper. 
Closing prices: Feb 94 90. -0.1 D (high 
.96,00, low 9;».»i:. April J.18.50. +1.30.. 
(high 119.50. low 118.00): Nov B7.30, 
+D.50/ (high 67.30, low 87.00). Turu- 
Q«aii At 5 (*^1) Inu nl-AQ .uonas 

MEAT/VEGETABLES 

SAll7HFIBJ>-^enc« par pound. Beef: 
Scbtcti Jnrted^sid*«-84^ nr90.5: Ulswr 
hindquarters 101.2 tq 104 5, lorequarttira 
87.2 to 89.8. Veal: Dutch hinds and 
ends' 135.0' to' T40 .13. ~ Umb: Engl. ah 
smell 80.0 ip 91.0, medium 82.0 id 89.0.. 
imported: New Zealand PL (new sea- 
son) '70.0 'to 71,0, YLe (hew season) 
68.5 to 59.5, Porlu English, under 
100 lb.. 450 to 55 5. 100-120 lb 45 0 
to 54.5. lto-160 !b 42.0 10 53.0, 

MEAT COMMISSION— Average rat- 
stock prices at represenuuve markets. 
GS+'-Cjiffe TOS^SJ p‘ per kg iw (+3.94). 
UK— -Sheep t97.72p per kg est dew 
(■-8.50). (?B— p.gs 19. Tip per kg Iw 
(-1.74). . L 

-.COVENT GARDEN— Pricee for. the 
bulk of produce, in starting per package 
except where otherwise staled. Im- 
ported Produce: Oranges — Moroccan: 
Navels 48/113 3.20-3.50: Spanra: Navels/ 


Navefina* 42/130 3 DO-4. 00; Jaffa: Navels 
88/144 485-5.36. Clementine* -Span. at 

3.00- 4.5* Moroccan: 1/6 3.OM.50. 

Satsumas — Spania: 3.00-3.50. Lemons 
— Cypriot 320-4.50; Greek 5.00-6.00; 
Spania: 40/ A) 2.40-2.E0. Grapefruit — 
U.S.: Pink 32/48 5.50-7.00: Cypr-at: 
Large cartons 3.00-4.00. email cartons 
280/-3.40; Jaffa: 36/88 3.80-4 55. 

Applde— French: New crop, Golden 
DsliCiOua 20 fb 3.00-4 00. 40 lb 5.00- 

7.00. Surkcrimson 40 lb 6.50-7.90, 
20 lb 3.40-3.80, Granny Smith 7.00- 

. 8.50; Canadian: Red Delicious 9.00- 
10-to: U.S.: Red Delicious B. 00-1 3.00; 
Hungarian: Starking 6,60-7 00. Pears— 
Dutch: Conuc 14 lb. per lb 0.26-0.27. 
Peaches— S African: 4.00. Neetsrines— 
Chilean: 33/48 8.00-3.00: Zimbabwean: 
18/28 4.00, Plums— Chilean: Santa 
Rosa 17 lb. per lb 0.80; S African: 
Santa Rosa, per lb QM-QJO. Baauly 
■ 0.40-0JD; Apricot*— S African: “111b. 
per . fb 0.4Q-O.5O. G ra pe * Spanish: 
Atmeri'a 11 lb 3.00-2.80, Negri 4.80- 
5.00; S African: Queen of the Vineyard, 
bcx'12.00rtt.S.:'Red Empertfr'0.a5-0.55: 
Chilean: Seediest, par lb 1.20 .Straw- 
berries— Kenyan: 0 60-0 80: U.S.: 12 oz 
■1.2ff:"ftrion: 3 oz 0.80.” Utcha'e*— 
S African: 0.80. Melona— 5pamsii: 
10 kg ' 5.D0-G.00. 15 kg A1 10.C0-11.00. 
Pineapple#— Ivory Coast: Each 0.40- 
1.40. Banana#— Colombian: Pier lb 0.18. 
Avocados— U.S. : Large box 55O-0.OQ: 
Israeli: 3.CO-2.60 Mangoes— Ken^a: 
8/18 4.50-5.00: Peruvian: 8.00; Brazi- 
lian: BOO. Dates— Tunisian- 20s 0.45- 
0.55; 'U.S. 0.42-0.43. Tomatoes— 

Spanish: 1.50-2.50: Canary. 2. CO-4 .50; 
Moroccan: 140-1.50. Onions — Spanish: 
Grario .3/5 4.40-4 BO. Capsicum#— Dutch 
5 kilns. Rad 10.00; Canary: Green 

4.00- 4.50.. Red 5.50-6 00; Italian: Green 
3.00; Israeli: Red 6.50. Green 3.60. 
Cabbages — Dutch: WhiiB 3 50. Rad 

4.00. Cauliflowers — Jersey: 24a 7.50- 


NEV/ YORK. January 11. 

Precious mauls and cooper re ca. vert 
a maicr setback in reaction id renel.ve 
econcmic r-ev/s. Etronn rtnllar tnd 
upv/ard piessure cn intere.; rare*. 
Heating o.l stsnad out strong jnd 
finished vresk as trade increased ns 
valuma of fredoino. Cotlcn was sh arr.f r 
lower on 'ympametic eellm? and on 
bearish fundamentals. Sug.-r rallied 
moderately on local short coven no . 
Wheat came under heav/ pressure from 
proleasionaf selling vjb.le mine and 
soyabeans eased cf» . slightly in sym- 
pathy. reported Heinbfd. 

Capper— Jan 71. ED C2.50J , reb 7215 
(72.10). March 73 00-72.10. May 74 70- 
4.85, July* 76.50. Sept 78.25. Dec 80.75. 
Jan 81.70. March 83.40. May 85.10. July 
80.80. Sept E8 *50. 

•Gold— Jan 285.8 (295.01, Feb 387 5- 
38S.5 (297.5), March 291.5. Apr.! 254.0- 
225.3, June 402 5-4M.0, A11-2 412 0. 
Oct 422 4. Dec 421.9. Fab 441.6. Apr. I 

451.5. June 461 5. Aug 471 5. OcJ 

421.6. 

■Platinum— Jan 204 0 (268 E|. April 
26S.0-2C8.0 (273.0), July 277^. Oct 
229.1, Jan 403.6. 

Potatoes (round whites) — Feh 7: 7 
170 71. March 4fV7S.O r72*:l. Anril 
80.1-50 ?. Wav 76 9. Ssles: 

N8UW*P — Jan 8H7 5 fffig.n). Feb Pit 5 
1835.31. March 818 O^"* n. May I 
July 859 0-660 0. Rent 879.2. Per TO-'. 5 
Jin 918.2, Msrch 927 7. 74ay ¥71 2. July 
976 7. Sapi 996 2. Handy and Harm. a n 
bullion spot:. 8P9.00 1822.001. 

Sunar— Na it; March 12l17-12.r« 
(12 05). May 72 22-13.25 (73.101. July 
13 45, Sept 13 6S-13C7. Ort 12.85- V 3 «r., 
-Jan -13 E5-44.no,- Msrch - 14 45-14 50, 
Miv I4.*ln-14 FJ1. e . a ie<;- 6 240 

Tin— 700.00-727 On ir.o- - , .00-725 001 
CHlCanO. Jan ft. 

Lard — Chicago loose 13 50 (cimel . 


Live Cattle— Feb £0.00-59.95 ( 59.45). 
Adi. I 52.50 5ft m /E7.62). June 58B5- 
Aug 57E5-57.75. Oct 56 52. Dec 

57.7n. 

Lrae Hogs— Feb 43 45-45 30 (43.00). 
Arjrll 44.40-44 20 /ja.&l). j u ne 47 80- 
47 CO July 42 £0 48.35. Auc 47.85-48.00, 
Ocr <rE 05. Deo 4it 82 F-b 47.90. 

♦tMaire— Marth Zllh-TTZ 1 * (274LT. 
May 222-283*1 1284 It}. July 2871.-288, 
Sept 289««. Dec ZSTr-^Z}?. March 

Porit BelJles— F»b BD.M-BD.40 (01 62). 
March 61.10-60 £5 (63.25). May 64.50- 
C7 CO. July 63.50-63 X Aug 62 37-62 80. 

t Soyabeans — Jan G27V627 (628LI. 
March 634.633 |C2Si. May 64SV645. 
July 657 , ,-658. Aug 660*^ Sept 659, 
Nov CGZ. J:-n 677L 
i 1 Soyabean Meal — Jan 188 8-189 .0 
(182.9), March 1P3 E-IBS 0 ( 789.1). May 
ISA 8-101.0. Ji.y 192.0-102.5. Aug 192.1- 
1*2 5. &*pi 192 0-1C2.5, Oct 131.1. Dec 
HOD. 

Soyabean Oil— Ian 13.83-18 85 (19 OB). 
Msrch le.’B-lST? (18 521. May 20.02, 
J"‘v rj.r2-21.C7. Ana 20 80. Sep? 21 OS- 
21 15. Oct 21 .20-21 25. Dec 21.60. Jan 
21 .70. 

t Wheat— March (402). Mey 

4-?-4',2' : l-TIO). July 4C4i,-405. Sap: 
4 1C. Dec 432 1 .-. 

WiriHIPFG. January 11 
§8arlcy— M/rch 129 40 (120.00), May 
i:2 10 /J22EOI. July 122 80. Oct 135.00. 
Df 124 CO. 

5 Wheal — SCV/P.S 12 5 per cen t p m- 
te.n current cif St Lawrence 237.29 
(235 54). 

All CL-nre par peund e^-vya rehouse 
unless otherwise stored. • S per troy 
oiinr.e. * Cents per troy ounce. 
1 1 Cnnts per 56-lb bushel. t Cents 
per 60-lb bushel. 1 5 per short tph 
TOO Ibj. FSCan. per metric ton. 
IV 5 per 7 . COO sq ft. f Cent* per 
d.-.ren . It S 'per metric ton. 


EUROPEAN MARKETS 


ROTTERDAM. January 11 
Wheat— (U.S. S' per tonne): U S. 
■ Two Dark Hard Wmier 12.5 per cent. 
Jan 201. m d-Jan/mid-Feb’ 302. m.d- 
Feb/mid-Merch 206. md- March /m.d- 
April 209. US. No Two Red Winter 
Jan 172. Fab 1 73. Marcn 176. U S No 
Three Amber Durum Jen 2£9, Feb 3-9. 
April-Msy 192, Mey 192. June 195, July 
1S6. Aug 197. Sept 199 Oct 2-30. Ncv 
200. U.S. No Two Northern Spnr.g 14 
per cent Feb 202. March 206. April/ 
May 191, June 192. July 192. Canudisn 
Western Rad Spring Jan 221. April/ 
May 217. 

‘Maize — (U.S. S per 'tonne)': U.S. No 
Three Com Yellow affpar 122. Jan 
731.50, Feb 136, MarcTT 120. April/June 
132. July/Sept 134, Oct/Dec 127. . 

Soyzbgfins— (U.S. S per tonne): U S. 
Two Yellow Gullparta Jan 2S5.50. Feb 
258. March 259.90. April 260. a. May 


262. June 263. July 26-J 50. Aug 255. 
Sum 265. 20. Oct 264. Nov 284. Dee 
267 75 

Soyamaat—tUS. S per tonne): 44 
per cent prorem U S. Jan 236. Fab 
226.50-237, Apr I, Sept 235.50, traded 
ertoiT 323. Jan 237. Feb 237.50. March 
223. Apt. '/Sept 225. Nov/March 243 
seller: Bra7'il Pellets afloat 246. Jan 
265. Feb 254. March 252. Aprri/Sept 
244 sellers. 

PARIS. January 11 

Cocoa — (FFr per 100 Filos)- Mch 
1200/1302. May 1304 50/1308. Jlv 1323/ 
1326, Sep 1337. 1340, Dec 1260/1365. 
Mch 1365/1375, May 1370/1380. Seles 
at coll: 2. 

Sugar— (FFr per tonne): Mch 1879/ 
1880, Moy 1922/1925. Jlv 193S/1945. 
Aug 1991 '2000, Oct 2000/7020, Nov 
2000/2020, Oec TO20 2D40, Mch 2060/ 
2070. Sales jI call: 4. 


INDICES 

DOW JONES 

FINANCIAL TIMES 

Dow : jan '“jah. Month Year 
Jones' 8 7 ago ago 

Jan. 8 r Jan. 7 ‘Month, ago Year ego 

Spot- 127.55 127.19 - - 

£48.89 1 24S ; 56_247 > I7_^ 262.48 
(Etfia: July 1. 1952 •« 100). 

Fut'ra 134.86 135.08 — — 

(New base: Dec 31. 19.74=»ibbj 

MOODY’S 

REUTERS 

Jan. 8 Jen. 7 Month ago Year ago 

Jari. H Jan. 8 M'nth ago Year ago 

Wbl.Tj_BM l A jjMtJ 1220.8 

(December -31. 1931-100) 

■1606.6 '1604.7 1618.4 J 721.8 

(Base: Saptttnbtt 18, 1931-100) - 


8.C0; French: 24s ‘ 80a. Celery— 
Jsraeli:.4.W: spanrab: 4J«-a.0D. Carrels 
r£““h: 22 lb 3.20-2.40, pie packed 
380: ltalran:.Per.lb O.iOO.IS. Letiuca 
—Dutch: 24 b 2.4C-2 80. 12s 2 40. 

Cucumbers— Canary: 2 00-2 to Chicory 
—Belgian: 3 kilos 2.23-2.50. Endm.— 
French: 5JB. New PciUtoes — C^nar/: 
28 lb were 5.C0. lines 5 OC 1 : Italian: 
Per (b 0.17*1; Jersey: !2-.a :.ibs vv-ru 
0 ». m di 0 *£ Cypr at: 5 63. Arti- 
choke* — Spanish: 2 Oj- 4.00. Augergines 
—Canary: 4 50-5 GO: Isree*.: C.5C>: U S ■ 
10.00. Walm/3— Cn ne=e: Per :b 0.40. 
Fennel— Italian: 5.50. 

English Produce: Potatoes — Pr: 55 lb. 
While 2-80-3. 40. rod 2SD-2 tO King 
Edwards 3.00-4.00. Mushrooms— Per lb. 
open 0 30-0 40. dosed C-.ia-O I'i Apples 
— Per lb. Brantley 0.16-0.28. Cox's G.2G- 


Q.34. Spartan's 0.S1-0.S. Pee r s- P ar lb 
Conference 0. 14-3.25. Cc.rn.ce O.JS- 
0.25. Cabbages — Pit to lb beg. Celtic/ 
Jan K.ng 2 CO-2 50. Lettuce— Per 12. 
round 1 60-2 40 Onions— -Per 55 lb 40.-’ 
tirtmi 2.MKSCQ. Carrots— Per 26,28 IT 
2 0l.i-4.CO. Beetroot— Per 22 Jb. round 
i.20. ' lany i.SCi-1 23. Parsnips — Per 
2S lb 4. 00-4 50. 'Svredes— ®e: r.ct 1.E0. 

I CO. sprouts— Per 20 ib 2.03-4.0^, 
Spring Greens— Per to »40 !b Carman 
7 09. Turnips— Per 28 lb 3-50-S.CQ. 
Rhubarb— Pt- 14 ib. per lb Q.S-D.2G. 
Leeks — Per 10 ;b S.50-4 GO. Cauliflower# 
—Pbr !2/24s 4.50-6 00. 

•k 

GRIMSBY FISH— Supply poor, demand 
good. Pr cbs 21 shir'l s Ce (unpro- 
cessed) pe' sreniy S.iail cad £5.00- 

£7.00. codi.naa £4-59, 



26 


Companies an i Markets 


LONDON STOCK EXCHANGE 


Bank issues feature markets on reports of Monopolies 
Commission rejection of Royal Bank of Scotland bids 


. Aecount Dealing Dates 
Option 

‘First Declare- Last Account 
Dealings tions Dealings Day 
Dec 23 Ian 7 Jan 3 Jan 18 
Jan 11 Jan 21 Jan 22 Feb 1 
Jan 25 Feb 11 Feb 12 Feb 22 

* " New time " dealings may take 
place from 3 JO am two business days 
eariiar. 

Investment interest at the 
start of a new London Stock 
Exchange trading Account yes- 
terday was blunted by the 
imminence of the threatened 
two-day rail stoppage and the 
mineworkers' ballot on strike 
action. Speculative enthusiasm, 
a feature of last week's trade, 
was undermined by reports that 
the Monopolies Commission has 
rejected both the outstanding 
bids for Royal Bank of Scotland. 

The last-named development 
shook the whole Banking sector 
and the four main clearers sus- 
tained opening fails to 20 and 
more before rallying to close 
only 7 down at worst. Royal 
Bank of Scotland collapsed to 
135p prior to ending 49 down 
on balance at 143p. Mirroring 
the sector's weakness, the FT- 
Actuaries Banks index fell 4.3 
per cent to 272.72. 

Leading shares were initially 
guided by Friday’s firmness on 
Wall Street but, in tbe absence 
of sufficient support, gradually 


eased until steadying late on 
yesterday's early advices from 
New York. Popular Electricals 
continued to display irregularity 
with both Bacal and Thorn EMI 
drifting lower awaiting interim 
statements, due tomorrow and 
Thursday respectively. 

Charting the course of lead- 
ing Industrials, the FT 30-share 
index was marginally higher at 
j0 am, but a net 1.7 off at the 
four counts from noon before 
closing 0.8 down on the day at 
530.6- The satisfactory trend in 
last month's Wholesale Prices 
indices made little impression 
on either Equities or Gilt-edged. 

The latter sector sustained falls 
extending to j at both ends of 
a market affected by yesterday's 
marked weakness in sterling and 
by yesterday’s call of £557m on 
the short- tap stock. Exchequer 
14 per cent 1986. Small demand 
continued for selected low- 
coupon shorts considered cheap 
in relation to last week's new- 
comer, Treasury 3 per cent 1987. 

Chinese Bonds revived and the 
5 per cent 1925 Boxer gained It 
points to £10i; publicity about 
a recent U.S. Court ruling may 
have caused the interest 

Deals in Traded options yes- 
terday amounted to 1.456 — 1.185 
calls and 271 puts. ICI remained 


FINANCIAL TIMES STOCK INDICES 


■ Jan. ; Jan. 
> It i 8 


I A 

Jan. [ year 
4 ago 


Government Sees — 

Fixed Interest > 

Industrial Ord 

Gold Mines 1 

Ord. Dlv. Yield. ! 

Earnings, Yld.Vfuin' 

PiE Ratio (new *1 

Total bargains 

Equity turnover £m.| 
Equity bargains. i 


61.89; 62.34 68.21 
! 68.65: 63. IS 70.22 
’ 618.1 522.3; 466.1 
[ 302.0' 301.3 68.31 
9.76; 5.73' 7.88 

10.12 10.06 17.57 
12.62' 12.70 6.98 

15,590' 13,505, 20,462 
50.86j 66.19.1 78.37 
12,319410,6711 13,559 


10 am 531.6. 11 sin 530.6. Noon 529.7. 1 pm 629.7 ' 

2 om 529.7. 3 pm 529.7. 

Latest Index 01-246 8028. 

*Nr I — 11.49. 

Basis ICO. Govt. Secs. 15/10/26. Fixed Int. 1925. Industrial Ord. 
1/7/3S. Gold Mlnae 12/9/55. SE Activity 197*. 


HIGHS AND LOWS S.E. ACTIVITY 


'. High 1 Low 

i 70.61 180. 17 
Govt Secs..., rSB/IBl 

Fixed Ini.... 72.01 61.61 

CSOlSi ( 28 / ID) 

tnd. Ord...... 597.3 446.0 

1 rdDi4) (ism 

Gold Mines J 429.0 262.6 

l ( 14 l 8 | ( 2916 ) 


'Since Com pilat'n | 

| High ; Low j .. 

-Dally ! 

i 127.4 49.18 G1 £!^. : 

,9,1/ss,; (5/1,75) 

150.4 ; 50.53 Bargains...! 

|(28/l U471 (6/1/76) Value. 

I 597.3 49.4 j^ d A * r 2 e 'l 

(M/4/81) (28/8/40) . 5KK! | 
j 658.9 43.5 Equities....;"' 

(22/8/80) (2 8/ 10/71) Bargains...! 

1 I Value 


Jan. Jan.!,' 
8 7 


170.1- 177.0 

82.5! 86.7 

228.5, 256.1 


166.9" 150.7 

7B.3j 72.4 

195.81 167.6 


to the fore with 224 calls com- 
pleted, while Imperial and 
British Petroleum attracted 194 
and 165 calls respectively. The 
lion’s share of put business was 
transacted in BP with 127 deals 
'Struck. 

Owners Abroad made a bright 
debut in the Unlisted Securities 
Market; offered at 10p, the 
shares opened at 13tp and, in a 
lively busines, advanced to 16p. 
Yesterday also saw the debut of 

Malaysian Ho in the USM; tile 
former mining concern, now a 
Midland property developer, 
opened and dosed at 53p com- 
pared with last April's suspen- 
sion price of 65p. 

Royal Bank weak 

Press reports that the Mono- 
polies Commission has vetoed 
the two £5O0m takeover bids for 
the Royal Bank of Scotland 
prompted a sharp mark-down in 
the latter which touched 135p 
before closing a net 49 down on 
balance at 143p. Bidders, 
Standard Chartered and Hong- 
kong and Shanghai, however, 
added 17 to 6S0p, after 700p, 
and 11 to 139p respectively. 
Bank of Scotland, a strong mar- 
ket of late on talk of a foreign 
bid. plummeted to 450p before 
rallying to close at 478p, still 
40 down on balance. The major 
clearers were also marked 
sympathetically lower at the out- 
set but rallied to close with fans 
ranging to only 7. Lloyds, down 
to 406p at one stage, closed 6 
Off at 422p, while Midland 
cheapened a similar amount to 
340p. after 330p. and NatWest 
7 to 395p, after 390p. Old bid 
favourite Griodlays ended 4 off 
at 202p, after 190p. 

With the exception of GiUett 
Brothers, which followed last 
week’s fall of 40 with a reaction 
of 5 to a 1981-82 low of I75p, 
Discount Houses edged ner- 
vously forward - from the 
depressed levels which followed 
Smith St. Anbyn’s shock dis- 
closure of heavy losses incurred 
in the gilt-edged market Smith 
held at 40p, while Cater Allen 
rallied 10 to 290p as did Union, 
to 410p. after 415p. dive 
hardened a penny to 18p. after 
19p. Contrasting movements in 
merchant banks took in Brown 
Shipley. 7 up .at 227p and 
Hambros, 6 easier at 147p. 

Losses in. Composites ranged 
to 8 as the market reflected 
fresh, concern about escalating 
compensation claims due to 
storm damage- 

interest in Buildings centred 
on secondary issues. Demand 
ahead of today’s preliminary re- 
sults Iilfted Belt Brothers 3 to 
4Sp. while favourable Press com- 
ment left March wle] 5 dearer at 
114p. In the Timber sector. 
Magnet and Southerns touched 
134p in response to the interim 
results, but drifted off to close 
unchanged on balance at 132p." 

ICI touched 308p in early deal- 
ings before small sellers gained 
the upper band and left the close 


a couple of pence cheaper on 
balance at 304p. Fisons lacked 
support and shed 5 to 145p, but 
Slanders attracted speculative 
buying on takeover hopes and 
gained 8 to 166p. Ellis and 
Everard gained 10 to 128p in 
response to the increased inlerim 
profits. Elsewhere in the Chemi- 
cal sector, Hoechst were quoted 
ex rights at 275p. 

Martin Ford up again 

Interest in Stores was mainly 
confined to secondary issues. 
Martin Ford attracted renewed 
speculative demand and added 
2 for a two-day gain of 51 at 
24p. Tern-Consulate rose 5 to 
60p for a similar reason while 
rises of 3 were noted for R- and 
J. Pullman, 46p, and Courts 
(Furnishers) “A,” 70p; the last- 
mentioned awaiting the mid-term 
results. Polly Peck remained 
unsettled by Mr Asti Nadir’s 
placing of 1.3m shares at 350p 
per share and closed 7 cheaper 
at 358p. B. Paradise advanced 

4 to 41 p following tbe doubled 
first-half earnings and reinstated 
interim dividend, but HFI, 
Interim figures expected next 
Tuesday, gave up that amount to 
5Sp. Favourable weekend Press 
comment lifted Asprey 25 more 
to 960p xd. 

After Friday's fall of 13 on 
rumours- that the group might 
announce a sizeable rights issue 
with Thursday's interim results, 
Thorn EMI continued to trade 
nervously and eased to 440p be- 
fore closing the turn off at 444p. 
Racal, half-year's figures to- 
morrow, also lost a penny to 
427 p, after extremes of 430 p and 
425 p. Other Electrical leaders 
made progress but closed well 
below the day’s best. GEC added 

5 at 805p, after SlOp, while 
•Plessey put on a penny to 364p, 
after 370p.‘ Ferranti featured 
proceedings elsewhere, rising 20 
to a 1981-82 peak of 645p on 
revived bid speculation. Concord 
Rotafiex hardened 2 to 56p on 
the planning permission for re- 
development of the company’s 
City Road premises. 

.Movements in the Engineering 
leaders were limited to a few 
pence either way, bat Carico 
featured secondary issues with a 
jump of 10 to 72p in response to 
the betteMh an -expected half- 
year results. Also ou interim 
trading statements. F. H. 
Tomkins improved 2 to 18ip and 
Wheway Watson hardened a 
shade to Sp. Other firm, bright 
spots included RHP, 2$ dearer 
at 70ip, and Resold, 3 up at 
42p. 

Selected Foods . figured 
prominently witii Ranks Hovis 
McDoogaU rising 3 to 65p on 
takeover hopes and Associated 
British Foods gaining 6 to lSlp ■ 
in sympathy. British Sugar ] 
firmed 5 to 37Sp, but Unigate, i 
the subject of considerable i 
speculative interest recently on I 
dawn raid rumours, slipped to i 
112p before closing a penny i 


cheaper on balance at 113?. In-firmer on balance at 122p. 
vestment demand lifted Be jam Carless Cape! revived with a rise 
7 to a peak of I20p, while Kwik of 5 to I62p, while NCC were 
Save, ex the rights issue, rose 5 also supported and put on a 
to 2I6p with the new nil-paid similar amount to 98p and 
shares dosing at 36p premium. Falmouth Qetroleum were note- 
Further speculative support worthy for a gain of 10 to 7Qp. 
Hf ted William Low 6 to ITSp and Flair Resources, in contrast, gave 
Singlo 21 to 36*p. A. GL Barr, a up 10 to 170p. 
thin market, jumped 10 to 215p F mid 0 Deferred were again 
in response to the better-than- briskly traded and reacted to 


expected annual results. 


Press reports that analysts JpP *? d 
bad downgraded their annual changed o n th e -day. Elswhere 

profit forecasts to the £52m level Sbipjrags /w,? 

left Tnulhouse Forte 5 off at • 

llgp res p onse to press mention. 

Textiles finished a shade 
CfanolfA flat firmer for choice. Coals Patous 

ManeiCO 1131 stood out with a rise of 3 to 

launched on the Unlisted 63p- 
Securities Market at 83p last The proposed sale of part of 
June, S fane! eo provided a tbe Shelford Estate for £8.1xn 


Securities Market at 83p last 
June, Stanelco provided a 


prominent dull feature in miscel- continued to direct attention to- 
J an eons industrials yesterday, wards Sogomana which touched 
plummeting 17 to 38p on the 520p before settling for a net 
chairman’s forecast that the com- gain of 5 at 510p. Castleford 
pany will incur a loss tor the added 10 more to 440p. 
first six months of the current 

year. Scan Date slumped 15 in Golds Under pressure 
sympathy to Sup. Elsewhere, , r 

Change Wares, persistently sup- Mining markets put on 
ported and up 8 last week, closed another dismal performance 
a further 6 higher at 33p. WGI following renewed weakness and 
also put on 6. to 114p, and Roek- uncertainty in precious and base- 
ware improved 3 to 55p. Dealings met al m arkets. 

■in Associated Comm uni cations South African Golds toil to 
A were suspended at 52p pend- their lowest levels for six months 
ing an announcement regarding 25 the bullion price gave tip 
future control of the company; S11.50 to a 26-month low of $JK59 
market sources suggest that Mr 311 ° UDC *r . . . . 

Robert Holmes a’Court will The sharemarket was marked 
acquire Lord Grade's sbarehold- down at the outset and strose^ 
ing and bid tor the company out- quently drifted lower on Jack of 
right. The leaders were featured interest with jobbers awaiting 
by a rise of 4 to 180p in Rank the first of the December 
Organisation following comment quarterly reports from the Gold 
ahead of the prriiininazy results Fields group, which are due -to- 
due on January 25. morrow. 

. i . . _ _ , The Gold Mines mdex gave up 

X Newspapers eased 113 more to 286.7, its 6 eighth 

5 to 178p; the annual results are declin(? in last nine 
*” ™J? l u ™ day - Elsewhere and its lowest since July 6. 

* . depr f?* d Id the heavyweights, falls ex 
market since the passing of the temled t0 a point more as 

to 85p, While Associated Paper; ^ while the medium and 
prehmmaty figures expected i ow ' er . pricei issues showed 
shortly, picked up 3 to 47p, after utanon 51 off al 7S5p and 
48p - Venterspost 23 down at 395p. 

Consideration of Rosehaugh's 


Financial Times Tuesday . January 12 1982 

RECENT ISSUES 

EQUITIES 


African Financials 


revised comtitonal bid for the registered sizeable losses in line 
company left London Shop with Golds. Geucor were 25 
Property 4 cheaper at 136p; cheaper at 925p^ while Anglo 
Beaumont, currently in the pro- American Corporation feU 17 to 
cess of merging with London 633p and UC Investments 20 to 
Shop, shed 6 to 129p. Elsewhere 620p. 

in the Property sector, Harter De Beers were active and gave 
Estates attracted fresh specula- up 9 to 343p, after 340p; the 
live interest and added 2 to 1981 world diamond sales figure 
62p. is expected to be announced to- 

day. 

Rprkplpv Rvn p-nori The continued weakness of 

oemeiey UiXp. gooa metal prices unsettled London 

Interest in the Oil leaders Financials winen were also 
failed to expand and quotations marked-down. However. little 
drifted lower on sporadic offer- selling followed the initial mark- 
ings and lack of support. British down and prices ended the day 
Petroleum closed a couple of on a reasonably steady note, 
pence cheaper at 29Gp and Shell Gold Fields were finally 8 down 
4 down at 386p. Among the ex- at 465p. Charter fell 5 to 245p 
pi oration issues, Berkeley were and Rio Tinto-Zinc 6 to 427p. 
good at 365p, up 20. following a Australians tended to ignore 
press suggestion that KCA’s renewed falls in overnight 
holding in the company is up for Sydney and Melbonrne markets 
sale. KCA International improved and generaly held around Fri- 
to 126p before settling only 2 days closing levels. 



128p before moving ahead to 


FIXED INTEREST STOCKS 



Renunciation data owelty last day lor dealing fra* ot ramp doty, b Figures 
baud on ’ prospectus estimate, d Dividend rata paid or payable on 'part of - 
capital; cover baud on dividend on hHJ capttst. B Assumed dividend and yield, 
b Assumed dividend and yield after scrip issue, m Interim elnce increased or. 
resumed. u Forecast dividend: cover based on previous year's earnings. 

F Dividend and yield based on prospectus or other official esxlmra.ter 1981. - 
Q Grass. T Figures assumed. * Cover allows for conversion of shares not 1 
now ranking for dividend of ranking only for re s t r i cte d dividends. 9 Placing 
pries, p Pence unless otherwise indicated. 1 1ssued by tender. ■ | Offered to 
holders of ordinary shares as a ** rights." ** Issued by way of rapHettmkm. 

Si Reintroduced. 41 Issued in connection with reorganisation, merger or take- 
over. |D Introduction. □ Issued to former preference hold Bra. ■ Allotment 
[attars (or fully-paid). • Provisional or partly-paid allotment iettsre. - +VWi h 
warrants. 1J Ufa linos under special Rule. * Unlisted Securities Msrkac. 
t* London U sting. t Effective Issue price after scrip. t issued es q petit 
comprising 33 Ordinary and £5 Loan 1986-88. / 


ACTIVE STOCKS 

Above average activity was noted In the following stocks yesterday. 


Closing 
price Day's 

Stock panes chenga 

Bank of Scotland ... 478 —40 

Berkeley Expl 365 -1-20 

Cons. Gold 465 — 8 

De Been Defd. ...... 343 - 9 

Driatamein Ell 1 ! — OH 

Ford (Martin) .... 24 + 2 


Closing 
price Day's 
Stock pence change 

GEC 805 +5 

KCA Int. 122 + 2 

Midland Bank 340 - B 

P. & 0. Defd 132 . — 

Royal Bank Scotland 143 —49 

Stanelco 38 —17 


FRIDAY’S ACTIVE STOCKS 

Based on bargains recorded In SE Official List 

Friday's 

No. of closing . No. of 

price price . Day's . price 


P. & O. Defd. 

FNFC 

ICI 

Ryl. Bk. Soot. 
Thom EMI ... 
Bk. of Scotland 
GEC 


price price . Day's 
changes pence change 


Stock' ■ cheni 

Pfeaaey - 73 

S rurls - - - 72 

' (Jnigeta 72 

Baecham- 11 

. De ben hams ... 11 

Glaxo . 11 

Smith -St Aubyn 11 


Friday's 

. No. of closing 
. price price 

- changes pence 

• 73 ' - 3S3 

— 72 W, 

i2 m 

11 219 

... 11 70 


price Day's 
penes change 


WORLD VALUE OF THE POUND 

Newart 

The teble below gives the latest except where they *« shown to be no direct quotation available: (F) free (Bk) banker*' rates: (cm) commercial 

available rata of exchange for the otherwise. In same cases market rate* rate; (P) baaed on U S. dotter parities rate; (eh) convarubts rate; (fn) finan. Aicxo 

pound agamet various ourrenoies on have been calculated from those of end going oteriing/doriar rates; (S) c/e) r«ea; (asC) exchange certificate 

January 11. 1982. In some cases foreign currencies to which tix>y ere member of the sterling arse other than rets: (k) Scheduled Territory: (nc) Aspre» 

rates are nominal. Market rates are the ’ tied. Scheduled Territories; (T) tourist rets: non-commercial rata; (nom) nomine): 


NEW HIGHS AND 
LOWS FOR 1981/2 

The following quotations In the Share 
Information Service vestortfay attained new 
Highs and Low for 1981-B2. 

NEW HIGHS (16) 


BUILDINGS til 


CHEMICALS (2) 

Ellis & Everard 


average of buying end toHing rates Abbreviations: (A) approxhnese rate, (Bos) basic raw: (bg) buying raw: (o) officio) rets; (sg) sailing raw. 


PLACE AND LOCAL UNIT 


VALUE OF 
S STERLING 


Afghanistan 

Albania. — . 

Algeria .............. 

Andorra.. .... 

Angola. — ~ — 
Antigua (8) — ... 
Argentina 

Australia (I). — 

Austria 

Azores. 

Bahamas ff) __ 

Bahrain (S) 

Balearic lsles^„ 
Bangladesh (*).. 
Barbados (8). — 

Belgium 

Belize.. 

Bonin .... 

Bermuda fS). — 

Bhutan l 

Bolivia 

Botswana (SI. — 

Brazil 

Brit. Virgin Isles 
Brunei (S>.— — - 

Bulgaria — 

Burma ... — .. 

Burundi^...-. 


Afghani [ 

Lek 

Dinar 

(Frenoh Franc 
— 5 Spanish Peseta ! 
Kwanza 

i 

E. Caribbean 9 

Ar. Peso 

Australian ff 

Schilling 

Portugese Escudo 


Ba. Dollar 
Dinar 

Spa/ Peseta 

Z.Z Babados ff 
8. Frano 

B ff 

C.FJL Franc 

Bdaff 

- Indian Rupee 

Bolivian Paso 

Pula 

Cruzeiro tt 

iOIU. 8. ff 

Bruno) ff 

Lev 

Kyat 

Burundi Franc 


Cameroon Re pubic C.F.A. Frane 

Canada - Canadian * 

Canary Island! Spanieh Peseta 

Cape Verde lsle.._ Cape V. Escudo 
Cayman Islands (f) Day. la. S 
Cent. Af. Repub. _. C.F.A. Franc 
Chad C.F.A. Franc 

Chile a Peco 

Chins- Renminbi Yuen 

Colombia - C. Peso 

Comoro Islands..... CLF.A. Frano 
Congo (Brazaville) Q.FA. Frane 

Costa Rica — . Colon 

Cuba Cuban Peso 

Cyprus (S) Cyprus 6 

Czechoslovakia..— Koruna 

Denmark™— Danish Krone 

Djibouti Fr. 

Dominica E. Caribbean f 

Dominican Repub. Dominican Pose 

Ecuador. Sucre 

Egypt. Egyptian a 

Equatorial Guinea. Ekuela 
Ethiopia. Ethiopian INrr 


Falkland Islands(S) 
Faroe lilands..^ 

Fiji Islands 

Finland ... 

Franc* .......... 

FrenchG*tyin Ar_ 
French Guiana — 
French Paciflcls.. 


Falkland Is. A 
Danish Krona 
FIJI* 

Markka 
Frenoh Frano 
C.F.A. Franc 
Lnofll Franc 
CSJ*. Frane 


Gabon ............. OF A. Frane 

Gambia (SI ............ Dalasi 

Germany (Eastl...... Ostmarfc 

Germany (West).... Deutsche Mark 

Ghana (S) .... Cedi 

Gibraltar (IQ......... Gibraltar X 

Graces Drachma 


PLACE AND LOCAL UNIT 


VALUE OF 
t STERUNG 


! 7.9660 

I 10.93 
! 185.05 

I ((CM! 62,936 
i i(T) 66.139 
; 5.10 

18,049.0(3) 

1.6870 

30.095 

185.16 

13865 

0.718 

185.05 
37.85 
3.7730. 

(fern) 73.26 
l(fn) B1J0 
3.7730 
S4GJ 
1^865 
17.40 
47.00 
1.6755 
845.67 
1^885 
3.8750 
1.7726 
12.35 
169^1 

546.5 
2.3430 

185.05 
69^5 
1.5780 

546.5 

546.5 
(BW73.SQ 

3.3337 
(F) 111.96 

646.6 
646.S 

37^0 

1.5115 

0.826 

/<eom) 11.00 
\ n/o 12.16 
[rn 18.55 
14.08 
350 (ag) 
6.10 
1.886S 
f(0) 47 J9 
KF) 62.33 
(U) UJ7 
3704 

. (P) 5 . 8850 

1.0 . 

14C2 
1.6645 
84735 
1043 
5464 
1043 
197 lag) 

6464 

44 

4.3075 

4.3075 

647 

14 

1104330 . 


Greenland 

Grenada (S) 

Guadeloupe. 

Guam 

Guatemala 

Guinea Republic .. 
Guinea Bissau. ..... 
Guyana (Sj 


Haiti 

Honduras Repub.. 
Hong Kong (8) 

Hungary." 


. Danish Kroner 
. E. Caribbean ff 
. Local Frano 
. U.S.* 

.Quetzal 
Syll 
, Peso 

Guyanese ff 

Gourd 
Lempira 
H.K. ff 



! VALUE OF 

PLACE AND LOCAL UNIT 

1 £ STERLING 


Iceland (8) 1. Krona 

India (31 Ind. Rupee 

Indonesia Rupiah 

tran.._. Hal 

Iraq — — Iraq Dinar 

Irish Republic 00- Irish £ 

Israel- Shekel 

i Italy.. — Ur* 

Ivory Coast-.—.- C.F.A. Frame 


Jamaica (8) 

Japan . — ...... 

| Jordan (S).— 

i Kampuchea. 

Kenya (3) 

Kiribati 

Korea (Nth) 

Korea (8th) 

Kuwait — 


Jamaica Dollar 

Yen 

-.-.Jordai Dinar 
Riel 

..... Kenya Shllfing 
Australian ff. 

Won 

Won 

Kuwait Dinar 


9.4325 

5.80 

10.89 

65.89421$ 


nA. 

17.40 

1,1970 

lsi.eorag) 

0.56175 

14225 

30.45 

2499.5 

646.5 


2463.8- 

19.375 

1.6870 

1.8001) 

1442.78 

0438 


Philippines Philippine Peso 

I 

Poland Zloty J 

Portugal Portugu'se Escudo! 

Puerto Rico U.S- ff j 

e«±a r (8) Qatar Ryal f 

Reunion lie de la... French Franc 

Romania Leu 

Rwanda..— Rwanda Frano I 


Laos New Kip 

Lebanon Lebanese £ 

Lesotho Loti 

Liberia Ubsrfan S 

I Libya — Libyan Dinar 

U so ht sustain—. Swiss Frane 

< Luxembourg Lux. Frane - 


Macao oeeaaseaasseoeees 

Madeira. Portug'se Eaeudo 

Malagasy Repubfte MG Frane 

Malawi ft) Kwacha 

Malaysia (S) Ringgit 

Maldhre (stands (8 Mai Rupee • 

Mali Republic. Mall Franc 

Malta (S) Maltese £ 

Martinique Local Frane 

Mauritania. Ouguiya t 

Mauritius (S) M. Rupee 

Mexico Mexican Peso 

Miquelon G.F.A. Frane 

Monaco.. Frenoh Frano 

Mongolia Tugrik 

Montserrat. E. Caribbean f 

Morocco Dirham 

Mozambique Metical \ 

Nauru. — Australian Dollar 

Nepalese Rupee 

NeUiertands Guilder 

Netheriand Antilles Antillian Guilder 
New Zealand CD... N. Z. Dollar 

Nicaragua. Cordoba 

S Republic- . c. F. A. Frails 

Nigeria Oi. Naira 

Norway Norway Krone 

Oman Sul'ate of(S) Ha! Omani & I 

jaWetan. Pakistan Rup^ 

Panama..... Balboa * I 

Papua N.Culnsall) Kina I 

Paraguay Guarani 


11.35 

13440 

546.5 

I. 7300 
44426 
7.4670 

1,0034 

0.740 

1043 

108,40 

19.6750 
40,90 
5464 
1043 
(o)641 no 
5.10 

1043 (sg) 

56.40 

14870 

35.10 

4.7160 

5.5766 

8.3060 

1846 

646.5 

1405446 (sg) 

II. 005 


irO) 258.77 
1(F) 310.78 


*L Christopher (S).E. Caribbean ff . 

St- Helena St. Helena £ 

S. Luoia E. Caribbean ff 

SL Pierre — Local Franc..... 

S. Vincent (8) -.E. Caribbean 8 

Sahredor El Colon 

Samoa American... U.S. S 

San Marino- Italian Lira 

SeoTome ft Prtn.-. Dobra 

Saudi Arabia. Ryal 

Senegal C.F.A. Franc 

Seychelles. S. Rupee 

Sierra Leone (S}-... Leone 

Singapore (8) Singapore S 

Solomon Islands (5) Solomon la 9 
Somali Republic— Somali Shilling (11 
Somali Republic.... Somali Shilling (2) 

South Africa (S) Rand 

South West African 
Territories (S) — S. A- Rand 
Spam — Peseta I 

Spanish ports In 
North Africa....- Peseta 

Sri Lenka (8) — S. L Rupee 

Sudan Republic — Sudan £ (u) 

Surinam 3. Guilder 

Swaziland (3) - Lilangeni 

Sweden- - S. Krona 

Switzerland — Swiss Franc 

*yrta- - Syria £ 


exe (Ai 961.00 
15.32 

I 3.5090 ' 

1 j )Cml66.B8 
1 l (T»66.96 
124.20 
i 1.8865 
! 6.93 

10.93 
! MCmia.13 
l(n/ci 20.01 
I 175.84 

5.10 
1.0 
5.10 
10.93 
5.10 
4.74 
1.8865 
2,299.6 
73.70 
6.51 
646.5 
11.791 eg) 
24536 
3.8750 
1.6905 
{A112.00 
25.50 
1.8175 


Peseta 
. S. L. Rupee 
Sudan £ (u) 

. 8. Guilder 
, Ulangenl 
. S. Krona 
Swles Franc 
Syria G 

Taiwan New Taiwan y 

Tanzania (S). Ten. Shilling 

Thailand..- Baht 

Togo Republic " * , JL Franc 

Tonga Islands If" Ha'anga 
Trinidad (S)—. — . Trinidad ft Tob. ff 

Tunisia.- - ~-inlalan Dinar 

Turkey. Turkish Lira 

Turks ft Caicos-... u_s. ff 

Tuvalu — Australian ff 

Uganda (9) Uganda Shilling 

United Sta t es—— U4. Dollar 

Uruguay. — Uruguay Paso 

UtdJtrab Emirates U.A.E. Dirham . 

U.54.R. ..... - Rouble 

Upper Volta— C.F4 Franc 

*“““ ffiiwtr 

Vatican Kalian Ure 

Venezuela— Bolivar 

Vietnam,—.—— Dong 
Virgin Islands U4. U4. Dollar 
Western Samoa (ff.) Samoan Tala 
Yemen (Nth)—. Ry«l 

Yemen (Sth). s. Yemen Dinar 

Yugoslavia.- - New Y Dinar 

Zaira Republic. Zaire 

Zambia Kwacha 

Zimbabwe Zimbabwe S 


185.05 
38.58 

1.70 

3.3768 

1.8176 

10.56 

3.4976 

(A)10.0 

I 67.90 
15.47B 
43.31 
' 546. S 

I 1.6870 
4.5276 
; 0.968(ag) 

I 254.85* 
1.B865 
I 1.6870 
I 1604 
1.5665 

'Corn I21.BS 
1(fn)21.83 
6.99 
1.3619 

546.5 
176.85 
1.6870 
2.399.8 
8.15 

'10)4.11 

\m4.42ni) 

1,8865 

3.0930 

8.61(m) 

I (AID. 6490 
I 804526 
10.468703 



ELECTRICALS (3) 
Cable ft Wireless Ferranti 
FarneH Elec. 

, _ ENGINEERING (1> 

Carrlo Ena. 

_ . FOODS (« 

Single 

_ INSURANCE (II 

Brrirrnall Beard 

.. . LEISURE <1l 


Assoc. Paper 

SOUTH AFRICANS (1) 
Anglo Am. Jmr. 

_ ^ TEXTILES II) 

Stroud Rllev 

OIL * GAS II) 
Jackson Exploration 


NEW LOWS (9) 


Glllrtt Brothers 
Whitbread A 


_ _ ELECTRICALS (1) 

Scan Data 

INDUSTRIALS (2) 
Core. Stationery Stanelco 

PROPERTY CD 

WereWture 

TRUSTS <1> 
Sel. Mkt Ptg. Rd. Pf. 

• MINES (1) 

Rustenhurg Plat 


RISES AND FALLS 
YESTERDAY 


British Funds 
Corpus. Dam ft 
Foreign Bonds 
inbustriais 

Financial ft Props. 
Oils 

Plantations 

Mines 

□therm 


Falls Seme 
66 23 

4 68 

139 M2 
75 321 

14 63 

2 19 . 

70 79 ; 

19 44 

386 1,548 


•Thrt part effte French community ft. Africa formerly French West Africa or French Equatarief Africa, t Rupees par pound. $ General rate* of oi , !rnn 
UDOrta 79.25. - fUn* Is ; die transfer market (controlled). ,« Now one officel rat*. (U) Unified rato. AopJIcabie on all minsacrlona except counYrtea Wnn a 

Ba " d Bre “ ^ R *“ ata " rau *-- HJ FffraBM exchange rets for 


OPTIONS 

First Last Last For 
Deal- Deal- Declara- Settle- 
ings mgs tion ment 
Jan 4 Jan IS Apr 15 Apr 26 
Jan 18 Jan 29 Apr 28 May 10 
Feb 1 Feb 12 May 13 Hay 24 

For rate indications see end of 
Share Information Service 

Money was given for the call 
in Trident TV. Royal Bank of 
Scotland, Scottish and Newcastle, 
Bunnab, Ladbroke, Tozer 
Kemsley and MiUbourn, ICL. 
Hampton Trust and Celtic Haven. 

; Puts were done in Royal Bank of 
Scotland, Burntah, Tubes and 
Hawker Siddeiey, while double 
options were taken out in Rovai 
Bank of Scotland and P & o 
Deferred. 


FT-ACTUARIES SHARE INDICES 

These InSces am the joiiit coovibtian tS the FbbbsxA Times, the bsfituie irf Acfaariei 

and Die Facufty of Actuaries 


EQUnY GROUPS 
& SUB-SECTIONS 


Figures In p ar ai lixstis show 
stocks per section 


Mon Jan U 1982 




1 CAPITAL GOODS (210) 

2 Buikfing Materials (25) 

3 Cortracting, Corstiucfion (28)— — . 

4 Dectricals GO) 

5 Engineering Contractaxs (9)—— — . 

6 MedatricaJ Eng ineerin g (67)——— 

8 Metals and Metal Forming 02) 

9 Motors (21) 

10 Other Industrial Materials (18) 

21 CONSUMER GROUP (l 1 *) 

22 Brewers and Dealers (20)———. 

’25 Food MaRdacfaefng on 

26 Food Retailing 05) 

27 Healtfi and Household rtrxtacts CD _ 

29 Leisure (24) 

32 Newg»pe^ P»*ISi)ngQ2> 

33 Pariardm and Paper HT1 

34 Stores (46) 

35 T«ttn xmi_ 

36 TflhaccMKttl- 

39 Other Cwrsomer (14) 

41 OTHER GROUPS (79? 

42 Chemhate Clfc) 

44 Office Equipment (4) 

45 Shipping and Transport 03) 

4f> Mtellaneous (Mi 


W SOOSHAIffilftex 

ST FINANCIAL GROUP 019). 

62 ibuteta 

63 DBtwxrt Houses (9) 

65 insurance (Life) f9 > - 

66 Insurance (Composite) GO). 

67 Insurance Brokers (8) 

68 Merchant Baits 02) 

69 Property (50) 

70 Other FinaneW Q5)— —— 

TT Investment Trusts ( 110 ) 

81 Rfitring Finance (4) 

91 Overseas Traders (17) — 

99 


PRICE 

DEUCES 


1 5jmb . 

2 5-15 ysn 

3 OBlSyas. 

4 Indeaidfts, 

5 AB Sods— . 


FIXED INTEREST 


Ws W a/a* 
to dame to ia£q 

n % . 8 \ to dale 


3S586 -005 lffi.94 flJB 003 

«B -U6 «28 - ojfl 

SKL35 -0J7 3fl02L - m 

MWB — HftOZ _ ON 

ML3B -4S3 18L47 ftfll OHS. 


6 IMmUhb. 70S +&84 7856 ~92T 

7 Prafat wra 6157 +937 33 


t Flat ytefd.H®B and lows record, base dates and vafu 
H avataWe from the ftfaGshcr^ The Rnsncbd Dim 




















































































































































31 
31 
47 
n 

133 IB 

270 172 
232 142 
108 68 
*245 130 
*184 85 
84 56 

n & 

148 69 

88 39 

86 33 
178 88 

29 19 

95 38 
60 32 

25 16 

93 51 

75 39 

*75 47 IHAT.Grp.lOp 

165 115 
48 24 

41 22 

134 74 

31 16 

88 48 

86 54 

101 67 

230 147 
10% 5 

92 58 

'76 69 

31 





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75 
132 
166 

72 Msrehwiel Z. 314 

72 MarslhaUs(H60 81 
60 Mav&Hassefl_ 65 
41 MJD-W 122 

12 & 

8 SS5 S 

19 tlod. EngJneets 23 

22 iMonkCM. 55 

177 
467 
215tf 



LIVERPOOL 

DEVELOPMENT AGENCY 

-236 -5411 


442 

2 

{&?? 

2 

1325 

4 

z£o 

6.75 

25 

f 










AS 

g| 84 
7 a m 
i4 *52 JIB 

3ll 
208 
,*289 
1 80 
78 
154 
206 
34 
217 
99 
*41 
58 
118 

J 

7.9K541 

37*2 
322 
547 
107 
645 
55 
129 
139 
833 
253 

43 I 10 
41 19 

19 I 14 
87 
375 
232 
245 
5 
4 




128 
82 
1® 

ZL5 
20 

P 

178 
Z75 
78 

a 

149 
192 

24 
217 

94 
27 
56 
105 
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278 208 
127 85 

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56 38 

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I Japan’s tdacks- in mtemztionsl securftfes I 

I arxl investment tmktoo ■ 

NOMURA 

r$n Hie Nomura Securities Co., Ud. 

*1 

m Nomura International Limited ■ 


3 Gtacechueh Stmt. London EC3V OAO 
TeL (01) 283-8611 


J 


250 1-5 ]3U0c| 
Copper 

410 1165 I Messina RO50„f 305dl-l { Q6De f 
Miscellaneous 


175 21 Anglo-Domlmon _ 

2% 12 Burma Mines lOp 
330 85 Coiby Res. Corp. _ 

330 200 Cais.Murdt.2flc. 
10 5 WExptatiraGofd.. 

98 47 H-HementenlOc. 

180 65 Hf5hwoodRss — 

505 240 NoithsatfiCJl-L 

633 372 R-Ti 

03% £933 2 

103 13 ttSPO Minerals 15p 

47 15 Sabiralnds-CSl. 

44 21 rSoutiraettC.lflp. 

650 )455 para Exptn.$i 


30 -10 — 

1412 0.75 

130 — 

250 Q60c 

63 ™ Z 
100 +5 — 

240 —S — 
427 -6 16D 

£9612 09*2% 

21 — 

13 — 

29 — — 
455 __ «— 


NOTES 


Uides otherwise inserted, prices and ce* dividends are in pen and 
eroonrt nations ere 25p. Estimated priceieaminss ratios and coven are 
based on latest meal reports and aeeoorts and. where possible, are 
mutated on half-yearly figures. P/Es are caha&rted oo “nel“ 
tfistitaion basis, earnings per share being computed oo profit after 
taxation and unrelieved ACT where applicable; bracketed feres 
indicate 10 per cent or more difference 0 calculated on “idT 
distribution. Conn are based on “maxtann” distribution; lifts 
compares gross- dividend costs to profit after taxation, exdKflng 
exceptional profHs/tosses bat tadtafing esttaaretf nbret of oflsectaMe 
ACT. YMds are based oo mUUe prices, are gross, adhsud to ACT of 
30 per cent and avow for value of declared dfetritmUcii aod rights. 

• “TV* Stock. 

• Highs and Lows marked tins bare been adjusted to aEim for rigtas 
issues far cash. 

t Interim since Increased or reamed 
± Interim sin* reduced, passed or deferred. 
it Tax-free to non-residents on applied 33. 

♦ Figures or report awaited. 

4 USM; not listed on Stnsk Exctamge and company mt subjected to 
same degree of regulaUoa as listed securities. 

tt Omit io under Rule 163(2Ka); not Csred on at« 5todt OsiangB 
and not sotdect to any listing requirements. 

8 Dealt in under Ride 163(3). 

£ Price at time of Suspension. 

5 Indicated dividend after pending scrip and/or rights Isas caver 
relates to previous t&rideod or forecast. 

♦ Merger Ud or reorganisation in progress. 

* Not comparable. 

♦ Same Interim reduced final and/or reduced earnings Inserted. 
f Forecast tfivtdcad; cover on earnings updat ed by latest interim 

statement. 

t Cover allows far conversion of shares net now rcoSdog far dividends 
or ranking only for restricted dividend, 
ft Cover does not allow ter shares wMch may also rank (or dMdend at 
a future date. No P/E ratio usually provided. 

B No par value. 

Si YieW besed on assumption TreEsury Bill Rctef^ysotrfnnoeducSJ 
maturity cf steefc. ftft Available raiy tp UK pmsicn schemes and 
Insurance companies engaged 'in pen.ion bcuness- a Tex free, 
b Figures based on prospectus or Cihv cM&l etti-xtie. e Cents. 
d Dnddeud rate paid or payable on pj.-t of raped; cover /used cn 
dfri fl raJ on faO capital, e Rederruret yield, f Fiat yield. 5 Assumed 
■Evident ud yield, h Assumed divided aid yield after scrip tea®. 
J Payment from capital sources, k tfenys. m Inrerin Wsber than 
previous total, n Rights issue pending, q Earrings sated on preliminary 
figures, s Drrtdaad and yield exciutir a social paynenl. t Irdntctcd 
dividend: cover relates to previous dhridend, PlE rath based on latest 
annual earcinss. n Forecast dividend: seter based cn pmrlcas jaa.-'s 
earnings, v Tax free up to 30p In the E.sDiviijnd amt yield barf cn 
merger terms, z Dividend and yield Indude z special payment: Cover 
dees not apply to special payment. A Net divdtrd and yield. 
B Preference Dividend passed or deferred. C CasSiac. E Minimum 
tender price. F Dividend and yield based on prospectus or other official 
estimates for 29B1-E2. £ Assumed divide. id and y.'efd after pemSog 
scrip and/or rights Issue: H-DMdead and yield based ca prospectus or 
other official estimates Fer 1982. K Figures based on prespectus cr 
ocher official estimates for 1981-32. M Dividend and yield Used on 
prospectus or other official estimates for 1983. H Dividend and ytefd 
based on prospectus or other official esuraates for 19SL P Figures 
based on prospectus or other official estimates for 2.932. ft Grass. 
T Figures assumed. Z Olstdend tetaf to date. 

Abbreviations: rf ex divdenU; c ex scrip issue; V ex rights; a ex 
all: dl ex capital distribution. 



Industrials 
311 AEed-Lyaas — 

37 BOC Inti. 

o i BS. ft. 

"1 Habere* - 

ll KSKir 

BlueCdefc 

H Boots 

7.9 Bowsers 

3-0 Br&Aeroaate. 
7 J. 8-A.T. . . .. 

8.9 BnsfnfJJ 

72 BwtaiOri 

43 Cadarys 

774 CxHUulti 

DecKtea 

PraUrrs— 

Dudes 

EatfeCUr 

fJis.G 

Gi:*.. Accident 

Ge“ Gfesne — 

Glare 

Grand Mel 

G-U.S.-A- 

GtBrfl LU 

GXN — 

Hawker Sctif— 


OPTIONS 

3 -monih Cal! Rates 

. House of Fraser J 23 Utd-I 

62j I.C.I 13 Vide 

if “toms'' 5 VJboli 

71 a I.C.I ■! 5 

9 Ladbxke__ ! 13 Propi 

36 Legal u Gen (23 g-;-] 

37 Lex Senna? i 9 r M . ; 

33 Uoyss3anic— J 2p Muj. 
M “Lef ". Z!Zj 3:.' Sr?; 

29 LmisriEticI {&-'? o fJ5 * 

17 Liisk Ini.-^. U r.-- ■ 
23 “tona"— I.. ■ li [Tcv.n 
8 MrLs. clSpoa- — 15 1 

22 M^LtKJoi'k— . *6 iii'e . 

8 N.c.l " U.., , 

51. K£i.«fi 32 - 1 

7 ? GOOfS ?. 

15 Kcssev- ti 

rg’ FH.M 7 P'*"' 

Ri->0'r.M._ 24 

3 6 Reefi lain) 23 J”? 7 

£5 Star. — 5 

32 Tesco , 5 

g Tb^EMI 30 ««m 

36 Tms; Houses — 11 Ctarti 

30 TidWlnvea 12 COTS,' 

32 Turner &NewalL 7h Lonrtt 

25 t/nflevw— — 50 foot. 


;3r:. , .Pel'slB5MJ 28 J 

2-^h Cl II 

Cri-'whall 6 j 

19 


fjBczs 

Charter Cast _J 21 
Cons. Gol d .. 40 

Lonrba 1 7 

R/oT.ZiiE 1 45 


A selection of Options traded is gives on Oft 
London Slock Exchange jfeport page 


"Recent Issues” and “Rights” Page 7h 


tins service is anBzbte to every Company dntt fa on Stock 

Exchaga UroaghoBt the Uidixd Kfagdata fsr aftt et£600 

per annum fpr each Mtwflj 
























































































































































































SSu«» tuk)plG 

\m Whatever you 


FINANCIALUMES 


Xfeedibofiitogrow? 

Emirate to 




Tuesday January 12 1982 


BY JONATHAN CARR IN BONN 


BY PETER MONTAGNON, EUROMARKETS CORRESPOKDB4T 


CHANCELLOR Helmut Schmidt 
of West Germany will meet 
President Francois Mitterrand 
in Paris tomorrow to co-ordinate 
policy on Poland following 
strong French media attacks on 
Bonn's attitude. 

The surprise meeting was 
called at short notice because’ 
Herr Schmidt has grown 
increasingly concerned about 
the French Press’s critical 
attitude towards Bonn. 

In numerous recent French 
articles and commentaries. West 
Germany has been shown as 
drifting into neutralism and as 
having little real concern for 
the fate of the Polish people. 

Part of this fierce Press 
reaction is seen by the Bonn 
government as having been 
inspired by members of the 
French socialist administra- 
tion — though certainly not by 
the President himself. 

It is hoped here that, by 
demonstratively co-ordinating 
Polish policy at the highest 
level, at least some of these 
sharp public attacks will be 
checked. It is felt that if they 
continue in their current form. 


MacGregor 


warns of 


jobs threat 
from U.S. 


Continued from Page 1 


ACC 


the subsidiary company which 
held the house and that this is, 
prime .fade a breach of the 
Companies Act. It also alleges 
that the circular to shareholders 
was misleading in several 
important ways. 

A big upheaval in the control 
of Central Television, which has 
taken over the old ATV 
franchise in the Midlands and in 
which Associated holds 51 per 
cent, may be on the way. Under 
the 1981 Broadcasting Acvt pro- 
gramme contracts may not be 
controlled by an individual not 
ordinarily resident in the UK or 
the EEC or by a company not 
registered in the UK or EEC. 

Mr Halmes a Court as an 
Australian would be disqualified 
from taking over effective 
control of the franchise and it is 
expected that Associated’s stake 
in Central will be reduced to 
under 50 per cent. 


they could weaken broader 
Franco-German relations. 

The West German govern- 
ment believes, in any case, that 
M Mitterrand’s Polish policy 
is close to Herr Schmidt’s— 'not 
least in its caution about im- 
posing economic sanctions of 
the kind advocated by the U.S. 


sharp words for M Claude 
Cheysson, the French Foreign 
Minister, whose performance 
during the Polish crisis is com- 
pared unfavourably here with 
the cautious approach of Lord 
Carrington the British Foreign 
Secretary. 


'By Alan Pike in London and 

John Wyles in Brussels 
BRITISH Steel Corporation 
has been forced to review its 
entire future strategy, raising 
the prospect of still more 
closures and job losses, because 
of anti-dumping actions by U.S. 
steel producers against Euro- 
pean companies. 

As the first petitions against 
European steelmakers were filed 
yesterday Mr Ian MacGregor. 
BSC chairman, said the action 
cast a “ very deep shadow " over 
the corporation's ambitions for 
the coming year. 

BSC executives will examine 
the corporation's entire capacity 
configuration over the next few 
weeks >to see whether it can be 
defended in view of the likely 
closure of the U.S. market. 

The corporation sold between 
300.000 and 400.000 tonnes of 
products to America Oast year 
and was budgeting on an in- 
crease to 400,000-500,000 tonnes 
this year. 

Whatever the eventual out- 
come of the American law suits, 
much of this business is likely 
to be -lost to the corporation in 
the short term. This puts at risk 
both the financial calculations 
on which BSC was expected to 
break even in the coming year, 
and maintenance of existing 
levels of employment in its 
plants. 

The American problem 
coincides with another severe 
problem for BSC caused by the 
effects of the snow at its Welsh 
and Scottish plants. This has not 
only disrupted production but 
has caused damage which could 
eventually leave BSC with a bill 
for between £50m and £100m. 

In the U.S.. National Steel 
yesterday produced details of 
the first -in what is expected to 
be a series of legal petitions. 

This seeks relief from “un- 
fairly subsidised” stetl products 
including carbon sheet, gal- 
vanised sheet, carbon plate, 
alloy bars and structural steel 
from Britain. France, Belgium, 
West Germany. Luxembourg, 
the Netherlands, Italy, Brazil, 
Spain and South Africa. It also 
accuses Romania of breaching 
the U.S. anti-dumping laws. 

Mr Howard Love, chairman of 
National Steel, spoke of a con- 
tinued high level of subsidised 
imports from the EEC in spite 
of warnings. He added: “We 
have been forced to file our own 
suit under the trade laws 
because other actions have not 
stopped the flood of illegal 
foreign steel coming into this 

country.” v , .. 

Representatives of leading 
European steel producers had 
hoped i to meet Viscount Etienne 
Davignon, the EEC Industry 
Commissioner, in Brussels yes- 
terday in advance of a minis- 
terial meeting tomorrow, but 
were prevented from doing so 
by bad weather. . 

UB. chokes off/ safety valve, 
Page 2 


It is also maintained that the 
two leaders get on well to- 
gether and that their mutual 
respect increased at a series of 
meetings last year, both bi- 
laterally and at international 
gatherings. 

It is ’also understood, how- 
ever, that Herr Schmidt has not 
been in direct contact with M 
Mitterrand since the eruption 
of the Polish crisis. 

This is officially said to be 
because the Chancellor has 
beep on holiday in Florida. 

This lack of speedy top level 
contact contrasts sharply with 
the quick joint reaction after 
the Soviet invasion of 
Afghanistan, when M Valery 
Giscard d’Estaing was French 
President 


Terr? Dodsworth adds from 
Paris: The French President has 
taken a stronger line on Poland 
than the West German leader, 
cleaxiy implicating the Soviet 
Union in the move, and advocat- 
ing an end to the partition of 
Europe laid down by the Yalta 
agreement. 

The French agree with West 
Germany, though, that economic 
sanctions against Russia are 
unlikely to be effective, and they 
support the idea of tying new 
economic aid to Poland to the 
restoration of pre-martial law 
freedom. 


ROMANIA has opened for- 
mal discussions on Its debt 
problems wKh international 
banks for the first time since 
evidence of the country’s 
shortage of foreign exchange 
emerged late last summer. 

Representatives of nine 
international banks are visit- 
ing Bucharest this week at 
the Romanian - Government’s 
request for talks on the 
country’s economic and finan- 
cial situation. 


Credit Lyonnais, • Deutsche 
Bank, Manufacturers Han- 
over, Sodete Generate and 
Union Bank of Switzerland— 
have gone to Bucharest with 
little idea of what to expect 
from today’s discussions. 

Some feel that the' present 
situation of late payments on 
short- and medium-term debt 
may prompt the Romanians 
to ask for a formal debt 
rescheduling. 


German officials also have 


In an interview at the week- 
end, M Cheysson stressed that 
France could not enter further 
negotiations on the rescheduling 
of Poland’s official debt while 
the country continued to sup- 
press basic freedoms. 


Romania owes around 
$10hn (£5.3bn) to the West 
and concern over its ability 
to service this debt has been 
aggravated by Romania’s 
refusal until now to discuss 
the situation. Bankers have 
complained that telex and 
telephone calls to Romania 
were being cut off in mid- 
stream. 


As a result, the nine banks 
invited to attend the talks— 
Bank of America, Banque 
Nati anale de Paris, Barclays, 
Creditanstalt - Bankverein, 


Others hope that such a 
development, which would 
further aggravate Eastern 
Europe’s debt problems 
generally, can ■ still be 
avoided. 

The meeting was planned 
some weeks ago bnt, because 
of the sensitiveness of 
Eastern European debt in 
the wake of the Polish crisis, 
it. has been kept confidential 
until now. 


Few details of the discus- 
sions in Bucharest today are 
expected to emerge before the 
end of the week. 


COLD COMFORT FROM DECEMBER RISE OF 0.4% 


Wholesale price rises slow 


BY ROBIN PAULEY 


LAST MONTH’S increase in 
wholesale, prices was the lowest 
since the summer, bringing 
moderate encouragement for the 
Government that the rise in 
inflation is slowing. 

But the year-on-year rise of 
11.25 per cent is still far above 
the level needed if the Govern- 
ment is to achieve its aim of 
bringing retail price inflation 
back into single figures. 

Official . figures from ’ the 
Department of Industry yester- 
day show that the small in- 
crease in factory gate prices 
was matched by hopeful news 
about the prices industry pays 
for fuel and raw materials. 
These remained unchanged 
overall in December. Higher 
domestic costs, particularly for 
electricity, were offset by small 
reductions in the prices of a 
range oF imported commodities. 

Yesterday’s figures show that 
the cost of manufactured pro- 


ducts sold in the UK -last month 
rose by 0.4 per cent over 
November. This was the 
smallest rise since July and 
resulted in the index for out- 
put prices rising to 230.0 
(1975=100). The year-on-year 
increase of 11.25 per cent com- 
pared with 11.1 per cent in 
November and 11 per cent in 
October. 


Although the annual rate 
continues to rise the rate of 
increase has slowed markedly 
in the last six months. Much 
now depends on whether 
sterling can be kept firm and 
interest rates -prevented from 
rising. 

The price of raw materials 
and fuel purchased by in- 
dustry remained unchanged in 
December after a 0.6 per cent 
fall in November, caused by 
an improvement of sterling 
against toe dollar. The fall an 
November followed several 



slowdown since last February, 
when the annual rate of in- 
crease over 1980 was just over 
8 per cent 


During toe past six months, 
manufacturers’ output prices 
rose by only 4 per cent which 
represents an annual rate of 
under 9 per cent. More than 
a quarter of December’s rise 
over November was due to 
higher food prices. 


months of sharp increases. 

The input price index stayed 
at 236.8 (1975=100) but the 
yearon-year increase fell to 15.5 
per cent to December, com- 
pared with 16.4 per cent in 
November and 18.3 per cent in 
October. 


November : and December 
toowed the first year-on-year 


The Government is hoping 
that if the trends can be main. 
tained the objective of single- 
figure retail price infla tion 
may not be as far away 
as some pessimists feeL Any 
optimism is likely to be 
tempered . when • the latest 
retail price figures appear later 
this week. These are expected 
to show little prospect in the 
near future of an annual Infla- 
tion rate under 12 per cent 


Living standards rise. Page 8 


Royal Bank of Scotland hit 



BY WILLIAM HALL, BANKING CORRESPONDENT 


UK TODAY 


OVER £100m was knocked off 
the dock market value of the 
Royal Bank of Scotland group 
yesterday on the reports that 
the Monopolies and Mergers 
Commission (MMC) had turned 
down both of the bids, by Stan- 
dard Chartered Bank and Hong- 
kong and Shanghai Banking 
Corporation, for Scotland’s pre- 
mier bank. 

The shares of the Royal Bank 
of Scotland, fell by a quarter 
from 192p to 143p yesterday, 
having touched 135p at one 
stage. Before the initial bid was 
announced by Standard Chart- 
ered Bank last March, Royal 
Bank of Scotland’s shares had 
been as low as S7p. 

Since then they have risen to 
a peak of 202p as speculation 
mounted that toe bids for toe 
bank would be allowed to pro- 
ceed. The Secretary of State 
for Trade has no power to stop 
a merger if the MMC recom- 
mends that it should be allowed. 
But a negative decision can be 
over-ruled. It seems likely that 
the MMC’s recommendations will 


be discussed by ministers tods 
week. 

Shares of most leading British 
banks also fell sharply yester- 
day. Bank of Scotland, which 
has been buoyed up by the hope 
that bids for Scottish banks 
would be allowed to proceed, 
fell by 40p to 478p. The feeling 
was that a negative derision on 
the Royal Bank- bid would pre- 
vent bids being mounted for 
other UK clearing banks. 




COLD and dry with sunny 
periods and fog patches. 
Some snow in the North and 
on the North-West coast 


London, E. Anglia, Midlands, 
S. Wales. 

Dry, sunny periods, fog. Max. 
temp. 2C (36F). 


The MMC’s investigation into 
the bids for the Royal Bank of 
Scotland raises highly complex 
issues involving the Bank of 
England's powers to control 
banking take-overs and regional 
questions about the drift of 
decision-making away from 
Scotland. 

Several Government depart- 
ments hold widely differing 
views about the bids. 

It had been thought that the 
MMC’s findings might be re- 
leased next week when Parlia- 
ment reassembles but there 
have been suggestions that toe 
release might be brought for- 


JtoyalBankof 

Scotland - 

Siam Price 


SJE., Central, S. and S.W. 
England, Channel 


Dry. bright, some snow clear- 
ing in the Channel. Moderate 
winds. Max. temp. 4C (39F). 


Nov . Dec 

1981 


ward to this week. The Royal 
Bank of Scotland holds its 
annual general meeting in 
Edinburgh on Thursday. 

Sir Michael Henries, the chair- 
man, and his directors are 
likely to face a hostile recep- 
tion. Many Scots have bought 
small shareholdings in the 
bank, 

A poser for the Cabinet, Page 17 


Rush to buy AT&T and ContiIlued from Page 1 


IBM halts trading 


Gold 


WORLDWIDE 


BY DAVID LASCFLLBS IN NEW YORK 


A RUSH of buy orders for IBM 
and AT & T the two U.S. 
companies whose long-running 
anti-trust cases were ended on 
Friday — halted trading in both 
stocks for several hours on WaU 
Street yesterday. 

When trading resumed, both 
gamed in price even though 
me stock market as a whole 
was men down quite sharply 
as investors showed their 
enthusiasm lor - the way both 
companies had emergen Irom 
toe anti-trust gauntlet Under 
its settlement, AT&T has 
to divest itself of its interests 
in 22 local telephone companies 
but will be able to offer data 
transmission and other high 
technology' services. 

After a three-hour delay, 
AT&T opened with, a trade in 
a single block of l-3m shares 
at 560.62}, up $1.75. IBM opened . 
on more than 700,000 shares at 
$58.62}, also up $1.75. 

Although these - price gains 
look modest; their impact on 
investment portfolios is con- 
siderable. AT&T is by far 
the most widely held stock in 
the U.S. with more than 3m 
shareholders. IBM is the most 
heavily capitalised industrial 
stock on the New York Stock 
Exchange, with a market value 
yesterday of about $35bn. 

AT&T, the largest utility, 
is capitalised at $46bn. 


The financial markets were 
also busy assessing the quality 
of all securities in the tele- 
communications and data pro- 
cessing business. Analysts agree 
that this business is on the 
threshold of an era as a result 
of last week's landmark 
developments. 

Stocks tike General Telephone 
and Electronics, and other com- 
petitors in these markets, were 
also among the most heavily 
traded. However, not all of them 
gained because of the threat 
of daunting new competition 
from AT & T. 

IBM’s gain came as the 
Justice Department agreed to 
abandon its 13-year-long anti- 
trust suit freeing the company 
from the huge cost of litigation 
put at tens of millions of dollars. 

The 22 local telephone com- 
panies covered by the settle- 
ment have borrowed nearly 
§48bn in the bond markets. 
There is concern that their 
.financial ■ position may . be 
weakened once they are left to 
fend- for themselves. 

One of New York’s two major 
credit rating agencies, Moody's, 
said yesterday, that it would be 
reviewing the credit standing of 
these subsidiaries in light of 
developments to toe months 
ahead as spnwBff plans are put 
together. 

Scene U.S„ Page 4 


slipped to 91.0 from. Friday’s 
91.8. 


The dollar also climbed to 
DM IL2830 from DM Z25S5, and 
to Sw Fr 1.8535 from Sw Fr 
1.8265. 


The latest rise to US. interest 
rates partly reflects the smaller 
than expected fall in the Ameri- 
can money supply published on 
Friday. This has led to concern 
that toe sharp easing in U.S. 
credit costs has now ended.- 


The fell in gold— down $11.5 
from London's Friday close to 
5389 — took the metal's price to 
the lowest since November 

1979. Then it was on its way 
up to the shotr-lived peak of 
$850 per ounce in January 

1980. 


Dealers said yesterday that 
investors were deserting bullion 
because high "dollar interest 
rates were making prohibitive 
the. cost of holding a non- 
yielding metal. Signs that U.S. 
inflation would stay in single 
figures as the American reces- 
sion - took hold are also dam- 
pening demand. 

Neither South Africa nor the 
Soviet Union— the two main 
producers- which increased bul- 
lion sales last year— have so 
far sold more than negligible 
quantities of gold in 1982, 
dealers report. South Africa, 
to particular, has appeared most 
reluctant to sell at less than 
$400 ah ounce. 


l.o.Man — — Tor 1 mot S-12 10 
launbul C 6 43 Tunis S 22 72 

Jersey C 3 37 VelenclB C 14 57 

Jo'burg S 27 81 Venice Ft 1 34 

L. "PlniS. C 21 70 Vienne C —7 19 

Lisbon C 12 54 Warsaw S -5 23 

Locarno C 1 34 Zurich C — 1 30 

London S 1 34 


C — Cloudy. F— Fair. R— Rain. 5— Sunny 
Sn — Snow,, t Noon GMT temperature*. 


Telford 


0952613131 



Mitterrand and Schmidt to meet Romanian debt talks 


THE LEX COLUMN 


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-•;U 4 * 


The landmark settlement of 
toe AT and T anti-trust suit 
had Wall Street in a frenzy 
yesterday. AT and T is not only 
by far the most widely held 
stock to the VS., with over 3m 
shareholders, but also has 
S5ton of debt outstanding to 
toe capital markets. 

The settlement wild transform 
Ma Bell from the safest of in- 
come stories into a high tech- 
nology company' to toe fore- 
front of data processing, long 
distance telecommunications 
and information systems. AT 
and T will gain its new freedom 
to exchange for spinning off 22. 
regional . subsidiaries, which 
generally make a meagre return 
on their very considerable 
assets. 


Index fell 0.8 to 530.6 


grappling with f a flin g real 
GDPs,- declining oil revenues 
and real disposable incomes, toe 
background . for reawakening 
such interest is hardly encourag- 
ing. ' • 


-/111 


FT 

GOLD 

MINES 

INDEX 


Company profits 


The surge of enthusiasm for 
toe more dynamic tifa Bell was 
enough for. trading an toe stock 
to he suspended yesterday, 
while the avalanche of buying 

orders- .was • sorted -«it 
Analysts expect it to gain; 
between 5 and 10 per cent from 
last week’s suspension price of 
$58} 

But the exposure of AT and 
T to ' unregulated markets, 
coupled with the absence of 
cosy annual rate increases, 
seems certain tp make the stock 
more volatile. AT and Ts 
trading range of $48} to $61} 
over the past year is consider- 
ably narrower than that of its 
new competitors like IBM and 
Xerox. 

The most worrying question 
for investors concerns the rat- 
ing of debt issued by AT and 
T*s operating subsidiaries. To- 
gether, they account for over 
80 per cent of toe group’s in- 
termediate to long term debt 
and are by far the biggest cor- 
porate borrowers in the bond 
markets. Removal of toe Ma 
Bell umbrella could jeopardise 
their tripe-A credit rating as 
Moodys, the bond rating agency, 
was quick to note yesterday. 

The performance of AT & T 
stocks and bonds, as well as toe 
securities of whatever new 
operating companies emerge, 
will hinge on the exact structure 
of the new entities and the 
political treatment toey receive. 

AT & T has said tt will try to 
establish toe new companies in 
the strongest possible financial 
condition. It should have some 
flexibility over how toe new 
groupings are packaged and 
could even assume some of toeir 
debt. 

The new unis will emerge 
essentially as telecom switching 
operations and their fortunes 
•will depend beavfly on toe grace 
and favour of toe tocal utility 
commissions which set rates. 
Some Ma Bril subsidiaries have 


1981 '82 1 


already warned that local phone 
rates could double over toe next 
five -years, so toe trie-phone rate 
issue is -bound to. become an 
even hotter poHticaft potato. 

The new units will be hoping, 
to keep rates down, by charfdng 
trunk line operators heavily for 
the privilege of plugging Into 
their local systems. Congress is 
also chewing over new tele- 
communications law. The feel- 
ing on. Wall Street is to at politi- 
cians will try to shape a bill 
designed to keep phone tariffs 
down. This could put toe operat- 
ing companies in an uncomfort- 
able earnings squeeze. 


- - A collection of., statistics re- 
leased yesterday confirm the 
substantial rise in -company pro- 
fits since toe summer. Gross 
trading . profits Of . the, ' non- 
North Sea sector are. up from 
. £3.8bn in the second quarter to 
£4-3bn in' toe third; and. the 
wholesale price. figures point ;to 
-a further restoration of operat- 
ing margins, with manufac- 
turers’ prices moving tip }, per 
cent in December while raw- 
materials were unchanged in 
price.' 

The personal sector accounts, 
meanwhile, show, that: tfie 
savings ratio was not as Tow 
in ; the second quarter of. 2981 
as; had initially been calculated, 
and in the third quarter toere . 
was actually a rise.. Go there 
may. after all, be room for Some 
further reduction in savings to' 
maintain consumer spending'fai 
the face of a squeeze on real : 
incomes. .. 


Magnet . & Southerns 


Gold bullion 


Traders in toe grid buftkra 
market ere holding their breath 
after toe price slipped below 
toe previous low. of .$396 set 
last August In * recent months 
central banks Brave tended to 
come in with buying orders 
whenever toe price sQSpped- 
much below $400, but in London 
yesterday toe price touched 
$386 at one stage and was $389 
at toe close, suggesting that toe 
metal could be moving down 
into a new trading range. 

In recent weeks -a price of 
around $400 has been enough- to 
attract quite vigorous demand 
for coins and small bars— 
particularly from toe Far East 
— while .toe jewellery industry 
also seems to ' have • been 
replenishing its stocks. But 
demand has failed to respond 
to political developments — for 
instance, in Poland— in toe way 
that could have been expected. 
With plentiful fresh supply 
anticipated, toe- market may be 
feeling its way down to toe 
price levels winch would re- 
attract speculative interest 

But since many countries are 


. With volumes remahjHjy 
under heavy pressure. Magnet r 
and Southerns has nevertheless 
been able -to hold on to Its ■ 
trading margins; so pre-tax 
profits in the first hal£ to / 
September, have falleh . by a . 
modest enough 21 per " cent to ; 
U0.6m. Volume in the~ timber 
trading arm — Southems-Evans 
— has fallen by about 13 per < 
cent, but prices in toe industry 
bottomed in about -May and the - 
subsequent stight recovery bos 
meant that ;the decline, in pre- 
tax profits, here. has been: held 
to 10 per cent 

On toe more important m^nu- 
factoring side, some small price , 
rises through the summer and - 
improved efficiencies have . 
meant toat pre-tax profits are 1 
down by a tenth.- ta line with ! 
volume. With toe withdrawal ; 
of a competitor in windows In 
recent months, there should be ' 
a pick-uu in toe current half. 
Meanwhile, there is a strong - 
likelihood that another -xreH 
manufacturer is about t p/eeafce 
operations. So, given adegrije * 
of. pick-up in demand 
operational gearing MsiSpd 
allow toe strong recovery "in 
profits that the demanding tat- . 
iug of toe company imp lies. The . r 
scares were unchanged ywiter- ' 
day at 132p, where the yieklis 
5} per cent- 






Lake District, Isle of Man, 
West Scotland, N. Ireland 
Very cold, but dry and sunny 
with freezing fog. Light 
winds. Max. 1C (34F). 


Aberdeen, Moray Firth, Orkney, 
Shetland 


Scattered snow, sunny 
periods, freezing fog. Max. 
1C (34F). 


Outlook: Cold in the South-East 
but elsewhere less cold from 
the North-West. Mostly dry 
with fog. 


Y'day Y’day 

midday midday 

®C "F "C 9 F 

Ajaccio F 15 59 L\ Ang.t C 15 59 

Algiers C IS 64 Luxmbg. R —4 25 

Am»dm. F -3 27- Luxor S 23 73 

Athana F 16 61 Madrid C 9 48 

Bahrain F 21 70 Majorca C 16 B1 

Bardna. F 15 59 Malaga C 12 54 

Bairut F 16 61 Mai la C 18 ©4 

Ballast S -5 23 Mchstr. S ”1 30 

Balgrd. C 0 32 Melbne 

Berlin F -8 18 Mx. C.t — — 

Biarritz S 15 59 Mlamit C 8 46 

Bmghm. S -S 23 Milan C 0. 32 

Blickp‘1 S -2 28 Montrl.t C-16 3 

! Bordx. S 13 55 Moscow C -7 19 

Boulgn. C -3 27 Munich. C 0 32 

Bristol S — 3 27 Nairobi — s — 

Brussels S — B 21 Naples F 16 61 

Budpst. C — 10 14 Nassau — — 

Cairo — — Nwestl. S -6 21 

Cardiff S -3 27 n Yorttf C-16 3 

Casbca. C .17 63 Nice. R 10 50 

Capa T, S 27 81 oporto C 12 54- 

Chleg.t C-19 ^2 Oslo S -2 28 

Cologne Sn— 5 23 Fan’s R Q 32 

Cpnhgn. -S O ' 32 penh F -23 73 

Corfu C 16 61 Prague S— 12 10 

Danvsrt F— 13 9 Rykjvk.. — — 

Dublin S 3 37 Rhodes F 17 83 

Dbrvnlc. C 13 55 r; b J'ot — — 

Ednbflh. C >-7 19 Rome C 16 61 

Faro R 14 57 Salzb’rtf C -1 30 

Florence C 11 53 S'dsrot C 3. 37 

Frankf’t R -7 19 S. M'rte'- 

Funchal S 19 66 Singapr. — . — 

Geneva C 5 41 S'liagot. — — 

Gibrltr. C 15 59 Sttfchm. F “6 21 

Giasg'w S —8 18 Stnsb’g C -1 30 

G'msey C 3 37 Sydney — — 

Helsinki S— 15 6 Tangier C 15 H 

H. Kong C 19 66 Tel Aviv S 18 64 

tnnsbr'k C -2 28 Tenerife F 21 70 

Invmss. C — 1 30 Tokyo C 8 46 



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